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| FOR IMMEDIATE RELEASE November 10, 2005 |
SYMBOL:DEVC TRADED:Nasdaq |
DEVCON ACQUIRES COASTAL SECURITY COMPANY
DEERFIELD BEACH, Fla, November 10, 2005 —Devcon International Corp. (NASDAQ: DEVC) announces
that Devcon Security Holdings, Inc., a wholly-owned subsidiary, has acquired all of the outstanding
capital stock of Coastal Security Company (“Coastal”), a leading provider of electronic security
services, in a cash for stock transaction valued at approximately $50.4 million.
Coastal, headquartered in Boca Raton, Florida, provides retail electronic security services to
commercial and residential customers principally in South Florida, and wholesale monitoring service
to dealers throughout the United States. Through the monitoring and servicing of more than 165,000
security systems, the total contractually recurring monthly revenue to be acquired is approximately
$1.26 million. Sheldon Katz, President of Coastal, will be staying on with Devcon’s Security
Division (“the Division”) as a Vice President, and will continue to oversee the Company’s Boca
Raton-based wholesale monitoring operation as well as be very involved in the Division’s growth
initiatives, particularly in the commercial and residential markets.
Stephen J. Ruzika, Devcon President and CEO, stated, “The acquisition of Coastal is a
continuation of our strategy to expand our position in the electronic security services business
through internal growth and complementary acquisitions. We welcome Sheldon to the Devcon family
and his twenty-three years plus experience in our industry brings added strength to our management
team. We believe the combined operations of Coastal and Devcon will greatly enhance our ability to
serve our industrial, commercial and residential customers in our chosen markets. Coastal will
further enhance Devcon’s commitment to delivering customer-focused security services to businesses,
large and small, as well as to the ever-expanding residential new home construction and commercial
markets in Florida. The combined company will provide excellent cost, marketing and service
synergies.”
In order to obtain the necessary funds to complete the transaction, Devcon Security Holdings,
Inc. and its wholly-owned subsidiary, Devcon Security Services, Inc., have entered into a three (3)
year $70 million revolving credit agreement and a 120-day $8 million bridge loan with CapitalSource
Finance LLC. Approximately $23.6 million of the new revolving credit facility will be used to
repay existing borrowed debt and costs associated with the company’s current loan facility which
will be cancelled as part of this transaction. Thomas B. Pagnani, Director with CapitalSource’s
Security Lending Group, commented “We are delighted to expand our relationship with Steve Ruzika
and his veteran team. With the acquisition of Coastal, Devcon is uniquely positioned in the
Florida marketplace, making them one of the strongest regional alarm companies in the country.”
Additionally, Mr. Ruzika noted that this transaction will enhance Devcon’s leadership position
in the electronic security services market with combined recurring monthly revenue in excess of
$3.8 million, inclusive of the previous announced merger with Guardian International, Inc.
About Devcon
Devcon has three operating divisions and an operating joint venture. The Security Services
Division provides electronic security services to commercial and residential customers in selected
Florida markets. The Construction Division dredges harbors, builds marine facilities, constructs
golf courses and prepares residential, commercial and industrial sites, primarily in the Bahamas
and the eastern Caribbean. The Materials Division now produces and distributes crushed stone,
ready-mix concrete and concrete block in the eastern Caribbean with principal operations
on St. Maarten in the Netherlands Antilles, on St. Martin in the French West Indies, on Puerto
Rico, and on Antigua