Bates Security expands with HITEC Security buy

Deal adds more than 600 accounts, talent to ABCO Security office
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Wednesday, November 14, 2018

LEXINGTON, Ky.—Bates Security LLC, a commercial and residential security company based here with branches in Prestonsburg, Ky., and Jacksonville, Fla., announced the recent acquisition of HITEC Security of Pikeville, Ky. The deal adds more than 600 accounts to its customer base in Prestonsburg, where Bates does business under the ABCO Security name.

Bates Security president Jeremy Bates told Security Systems News that he met HITEC Security company owner Tommy Kidd at ISC West, and realized they were from the same area, both running family owned businesses. “He was at a point where he wanted to sell his accounts and I had done the acquisition of ABCO Security earlier this year, so this new deal is a perfect match for us because it is literally one town over from where ABCO is.”

He continued, “Tommy is a great guy and very enthusiastic about the security industry and he has built up a solid business. I have known Tommy for a while now and we are honored that he selected us to be the ones to continue the legacy he has built.”

With the acquisition, Bates will bring on a new employee to the team, a technician, and Kidd will be an “important part of the transition process and long-term servicing of the company,” Bates said.

“When I decided it was time to turn my customers over to someone, I knew that Bates Security was the right company to call,” Kidd said in a prepared statement.  “I have known of Bates for a long time and trust Jeremy and his people.  They are good people and they know what they are doing, so I know my customers will be in good hands.”

Bates Security and its sister company, Sonitrol of Lexington received $10 million revolving line of credit from Capital One to fund organic expansion and take advantage of acquisition opportunities in both Kentucky and Florida.

Overall, Bates said the company is on track to gain around 7 percent in overall revenue for 2018 with RMR showing an approximately 9 percent increase from last year.

“Overall we have had a great year and this is our second acquisition and probably our final one for the year,” he said. “Our main mode of growth, though, is organically, and all three of our offices are having banner years. In Jacksonville, which is where we started our office from scratch under my brother, Brian Bates’ direction, has really gotten some wind in their sails and is really starting to take off, so we are very happy with the progress there.”