Moving from one business to another
TYLER, Texas - Wireless messaging company Teletouch Communications is in the process of buying a pair of security businesses, Hawk Security Services and State Hawk Security, two companies that are currently owned by an affiliated business.
The transaction, if completed, would transfer Hawk Security and State Hawk from Progressive Concepts Communications Inc. to Teletouch Communications. PCCI is a division of Teletouch. The deal is subject to regulatory approval. The purchase price was not released.
Thomas Hyde Jr., who was recently appointed chief executive officer of Teletouch and is president of State Hawk Security, characterized the deal as Ã¢â‚¬Å“an armÃ¢â‚¬â„¢s length transaction.Ã¢â‚¬Â
He said even though Teletouch and PCCI are related, the transaction is structured as if two unrelated businesses are buying an asset from another.
Hyde said he could not provide extensive details about the transaction, Hawk Security or State Hawk, until after the deal closed. He declined to release how many people each company employs, but said Hawk Security does business in Texas with a focus on the health care industry. It also serves the residential market.
By bringing Hawk Security under the Teletouch umbrella, Hyde expects the company to tap into financial resources and geographic reach provided by Teletouch. The wireless messaging company offers services in Arkansas, Oklahoma, Louisiana, Missouri, Alabama, Mississippi, Tennessee, Georgia, Florida and Texas.
Ã¢â‚¬Å“ThereÃ¢â‚¬â„¢s an ability to leverage the infrastructure that has been developed under Teletouch,Ã¢â‚¬Â said Hyde. Ã¢â‚¬Å“And, it will provide a vehicle for acquisitions in terms of financial backing.Ã¢â‚¬Â
Hyde said the sale could close by the end of December or early 2005.