FKI expands product line through acquisition

NEW ALBANY, Ind.--FKI Security Group completed another acquisition of a safe company in late June--adding Adesco Safe, a 50-year old, family-run safe manufacturer, to its growing line of safe brands. According to Van Carlisle, president and chief executive officer of FKI, Adesco held a number of assets FKI found valuable. "Adesco has a very good customer base, a strong dealer program and a good brand name," Carlisle said. "They also have an established service business that complements our own service activities." Adesco's dealer network consists of approximately 500 dealers across the country, which FKI will look at to expand its distribution channel. "We will be bringing in some of our existing product lines to their dealer base," said Carlisle. Adesco, which employs 25, will move to FKI's 51,000-square-foot manufacturing facility in Mira Loma, Calif., roughly 60 miles away from its current location in Paramount, Calif. Adesco will operate as a separate division, but its current President Earl Halls will continue to manage it. The deal follows two other acquisitions FKI completed in the safe manufacturing arena when it acquired McGunn Safe in December 2004 and EXL Safe in March 2005. Carlisle said that each of FKI's recent deals follow the trend of consolidation within the marketplace. "We think there are a lot of benefits to consolidation in terms of reducing back office expenses and offering a broader product line to a larger number of customers," he said, Although the company has been focused on building its safe business, Carlisle said it is consistently looking for opportunities to build its other brands, such as video security provider Image Vault through acquisitions. But he said the company also experiences growth opportunities for other divisions by acquiring companies like Adesco. "There are big tie-ins to Image Vault," Carlisle said. "When we add customers in retail and commercial segments through these safe companies, it provides opportunities to cross sell those customers. That is one of the reasons we look to build this side."