Seacoast Capital, a lower middle market non-control growth capital investor, announced today its successful exit from its investment in Mountain Alarm. Over the term of Seacoast’s investment, the Company increased revenue 99%; EBITDA 95%; and employees 77%. Recurring Monthly Revenue, the critical industry growth metric, increased 141% during Seacoast’s tenure.
Founded in 1952 and headquartered in Ogden, Utah, Mountain Alarm designs, installs, services, and monitors residential and commercial security and fire alarm systems. A third-generation, family-owned and managed enterprise, the company operates in Arizona, Colorado, Idaho, Utah, and Montana, and is the 36th largest alarm company in the U.S. (out of a total of over 10,000), and one of the largest in the region.
In 2012, Seacoast invested subordinated debt with warrants in Mountain Alarm to assist with the replacement of the Company’s incumbent senior lender who exited the industry and support the accelerated organic growth of its regional business. During the term of its investment, Seacoast also supported the Company’s serial acquisition strategy, including the add-on acquisitions of Rocky Mountain Alarm, Armed Alert, Kenco and United Systems.
“Our investment in Mountain Alarm has been a perfect example of Seacoast’s focus on highly motivated and incented management teams with a significant runway for growth—both organic and via acquisition. The Company grew substantially over the course of our investment so they were able to buy out Seacoast’s position entirely with senior debt—as a result, Rod and the rest of the Mountain Alarm team now are back to owning 100% of the business. Seacoast wishes Mountain Alarm the best as they enter a new growth stage,” said Jeff Holland, a Partner at Seacoast.
“Seacoast was the perfect partner for us,” said Rod Garner, CEO of Mountain Alarm. They were deeply engaged when we needed help and stood out of the way when we didn’t. What else could any company ask for from a minority investor?”
About Seacoast Capital
Founded in 1994, with offices in Boston, MA and San Francisco, CA, Seacoast Capital invests non-control growth capital in partnership with management in lower middle market companies. Seacoast is industry agnostic and typically invests $5 million to $30 million of capital in companies with $10 million or more in revenue and $2 million or more of EBITDA. Capital is used to support growth, refinancings, acquisitions, family wealth and ownership transfers, shareholder liquidity events, and partnership or management buyouts. Geographically, Seacoast invests anywhere in the United States. Since its inception, Seacoast has managed over $600 million of capital, which the firm has invested in 71 non-controlling transactions. Now managing its fourth fund, Seacoast Capital Partners IV, L.P., the firm continues to actively seek new investment opportunities. Learn more by visiting www.seacoastcapital.com.