Brink's getting back into home security?

RICHMOND, Va.—Brink's got out of the home security market in 2008 but may be re-entering that market, the company's CEO said recently.

Thomas C. Schievelbein, who also is chairman of the board and president of The Brink's Company, based here, raised the possibility during a Jan. 30 earnings call.

Schievelbein said 2014 would be a year in which the company focused on controlling costs and repositioning itself for more profits in 2015 and beyond.

According to Seeking Alpha, Schievelbein then added, “Finally, one area under consideration is a potential re-entry of Brink's into the home security market, which we exited in late 2008 through the spinoff of our Brink's home security unit. Our non-compete agreement recently expired and we're getting inquiries about the prospect of re-entering this market.”

He continued: “Market research leads us to believe that Brink's is still recognized by consumers as the No. 2 brand in this market. In an attempt to address the numerous inquiries we've received, I want to let our current and prospective shareholders know that our review is ongoing, that we have not made a decision as to how or whether we will re-enter the market.”

Schievelbein said the publicly traded company would “disclose any significant developments” regarding its possible return to security but would not comment any further until then.

Imperial Capital, a full-service investment bank based in New York City, in a report today gave Brink's an outperform rating and set a one-year share price target of $38, about 24 percent above its recent trading price.

The Feb. 6 report, authored by Jeff Kessler, Imperial Capital's managing director of institutional research, said, “Based on our discussions with investors and industry experts, we believe that Brink's could expand into other markets, such as security monitoring, within the next few years.”

With Brink's commitment as yet unclear, Kessler declined to comment beyond what was contained in the report.

In 2008, Brink's Home Security spun off from its parent company, The Brink's Company. And in 2009, Brink's Home Security rebranded as Broadview Security.

In 2010, Tyco International, which then was ADT's parent company, acquired Broadview Security for $2 billion. ADT spun off into an independent company in 2012.

Security Systems News continues to report on this story.