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Posted by mleuck on June 26, 2009, 10:32 am
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>
>
>
> > RICHMOND, Va.--Brink's Home Security is going to have to find a new nam=
e
> > by 2012.
>
> > Industry watchers were taken by surprise by the news, included in a
> > lengthy May 30 SEC filing, that Brink's Home Security has been paying
> > royalties (7 percent of revenue--roughly $33 million in 2007) to sister
> > company Brink's, Inc., to use the Brink's Home Security name and will l=
ose
> > that privilege three years after the two companies are spun off into
> > independent firms by The Brink's Company at the end of this year.
>
> > "Brink's Home Security is the mass marketing brand name of choice for t=
he
> > residential user; the Brink's Home Security name is golden," said indus=
try
> > analyst Jeff Kessler. "It's going to be a challenge to come up with
> > another brand name [like Brink's]."
>
> > The branding news was greeted with enthusiasm by Brink's competitors. R=
uss
> > Cersosimo, CEO of super regional Guardian Protection, called it "great
> > news." He said Brink's is "the best run national company out there. I'v=
e
> > admired Brink's and their numbers for years." Cersosimo said he's "not
> > afraid to compete with them, but the challenge is competing with that
> > name: Brink's is synonymous with security ... We welcome the break-up."
>
> > Did the hedge funds who were pushing for the spin-off, such as Pirate
> > Capital and MMI Investments, know that the brand name would be going aw=
ay?
> > Or did they not care, figuring they'd be off to greener pastures by 201=
2?
> > Thomas Hudson of Pirate was precluded from commenting because he sits o=
n
> > The Brink's Company board of directors. Clay Lifflander of MMI did not
> > return calls from Security Systems News seeking comment.
>
> > Asked this question, Ed Cunningham, spokesman for The Brink's Company
> > said, "As we went through the process, branding was always raised as an
> > area of importance to both units."
>
> > Kessler, who's been following the company for years, said he'd never se=
en
> > those royalty numbers spelled out in a filing before. He noted that The
> > Pittston Company, which then owned Brink's, Inc., launched Brink's Home
> > Security in 1983 and BHS did not become "profitable or revenue neutral =
for
> > the first eight years." He surmised the royalty may have been a sort of
> > payback to the Brink's, Inc.
>
> > Kessler also noted that The Brink's Company has a five-year non-compete
> > agreement with BHS. At that time, The Brink's Company could launch anot=
her
> > physical security company, although Kessler said he believes Michael Da=
n
> > (CEO of The Brink's Company) would be more likely to enter the commerci=
al
> > industrial space, rather than the residential, light commercial busines=
s
> > that BHS is in right now.
>
> > Asked if The Brink's Company intends to launch a new physical security
> > company once the non-compete expires, Cunningham said, "All I can reall=
y
> > tell you is that it won't happen before five years."
>
> > There's also a good chance, Kessler said, that Brink's Home Security ma=
y
> > be acquired by another company within the next three years, which would
> > render the branding question moot.
>
> > The rebranding issue will be a challenge, but BHS is in good shape and =
has
> > steady-state cash flow--a metric Kessler considers important in
> > determining the profitability of a security company's recurring base of
> > business--"that's higher than any one I know of in the public market." =
He
> > also said the "top notch executive team" at BHS, notably CEO Bob Allen =
and
> > CFO Steve Yevich, mean the company "is in good hands."
>
> call it:
> 1 =A0 =A0BINKY
> 2 =A0 =A0BANKS
> 3 =A0 =A0SCUM SUCKERS
> 4
> 5 =A0 =A0 2 DOORS AND A MOTION.
> 6 =A0 =A0YOU'LL NEVER OWN IT.
I've never seen Brinks install 2 doors and a motion unless it was Tom
Fowler's install :)
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