Western Resources, Protection One agree to merge

Sep 1, 1997 12:00 PM, Staff

Western Resources and Protection One Inc. have announced their intent to combine their security services businesses to establish a $1 billion company. The new company, to be called Protection One, will be the second largest monitored security business in the nation, the principals say.

The combined entity will launch with a base of more than 670,000 customers in 48 states, and major co-marketing and co-branding agreements. Completion of the transaction, which awaits the approval of the current Protection One shareowners, is expected this fall.

Currently, Protection One is a leading monitored security business in seven Western states, including California. It is a co-marketer of security-related services with electric power utility companies, including PacifiCorp and the Salt River Project.

Western Resources, which acquired the former Westinghouse security operations in December 1996, provides security to more than 440,000 customers in 48 states, and also owns natural gas and electricity companies in Kansas and Oklahoma.

"This transaction continues our strategy to build on the phenomenal strength of the security business and will take advantage of logical compatibilities between security and energy when appropriate," said John E. Hayes Jr., Western Resources chairman of the board and chief executive officer. Hayes said the new company will be headed by James M. Mackenzie Jr., currently chief executive officer and president of Protection One.

The agreement provides that Western Resources will contribute its security operations and $320 million in exchange for 80.1 percent of Protection One's outstanding primary shares and shares issuable upon exercise of options and warrants. Protection One shareowners of record as of the closing date of the transaction will receive a special dividend of $7 a share after the transaction closes and will continue to own 19.9 percent of the company.

Protection One will be headquartered in Culver City, Calif., and Irving, Texas, with principal operating centers in Beaverton, Ore., and Orlando, Fla.

ISC Expo to make Midwest debut in '98

More than 2,500 industry professionals are expected to converge on Navy Pier in Chicago for the inaugural International Security Conference and Exposition May 31 through June 1, 1998.

The Security Industry Association (SIA) will sponsor the event. ISC Expo/Chicago will become part of the family of events that includes ISC Expo/New York and ISC Expo/Las Vegas.

The location of the expo will alternate every other year between the Midwest and the Southeast.

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