Firms join to create APi Elec.

They now share a single office and plan to expand in the security market
 - 
Sunday, June 1, 2003

DULUTH, Minn. - Two large electrical contracting firms owned by the same company for more than a year have merged to form APi Electric, a company that intends to grow its security business in the coming years.

The new company, APi Electric, was borne from Lakehead and Thompson Electric and capitalizes on each company’s strength. Lakehead was proficient in industrial and highway street lighting markets, while Thompson has focused on the commercial and electrical contracting services. Both companies provided cabling, fire, security, sound system and other low-voltage services.

The merger enables the company “to capitalize on each other’s expertise,” said Jeff Tyllia, president of APi Electric.

While there was some downsizing, the newly formed company retained 160 employees. It is also based in Lakehead’s office, a larger facility with 11,000 square feet.

Overall APi Electric records $25 to $30 million in annual revenue. Of that, about 10 percent of revenues come from the security market.

Within three years, Paul Scinocca, estimator and job manager with APi Electric’s technology division, plans to grow revenue from the security market to 30 percent.

To do that, the company is beginning to work with dedicated product lines, instead of working with multiple lines. It will also look to bring more business onboard through internal sales efforts.

“Right now we’re working off open bids,” said Scinocca. “We’ll be looking to cultivate more business on our own.”

A majority of the company’s work comes from the fire business, accounting for about 80 percent of all work. But company officials intend to expand upon its security base by taking advantage of training programs offered by security manufacturers.