Apollo to Buy ADT for $6.9B - Combine with Protection 1
Run Under ADT Nameplate
The ADT Corporation, which provides home and business security systems for 6.5
million customers, is being acquired by the private equity firm Apollo Global
Management for $6.9 billion in the largest leveraged buyout so far this year.
Apollo intends to merge ADT with Protection 1 and ASG Security, two other
security companies that the firm concurrently agreed to purchase in May,
although they will all operate under the ADT name. The combined company
would create pro forma annual revenue surpassing $4.2 billion.
Combining ADT with Protection 1 will bring large cost synergies, Cetingok
estimated there is "north of $500 million in corporate overhead [that could be
cut] at ADT, not to mention the branch network. There is a ton of overlap in the
branches. There are clearly cost synergies there as well."
The combined company is expected to generate $318 million in RMR and have more
than $4.2 billion in annual revenues. Cetingok called the task of combining
Protection 1 and ADT "a bigger lift than anyone has ever done before" but noted
that Tim Whall "has proven time and time again his ability to do this. ...
Creating operational efficiencies is Tim and Protection 1’s core competency. I
wouldn’t bet against them."
The ADT Corporation Agrees To Be Acquired By Apollo Global Management, LLC
Protection 1 CEO Timothy Wall to run combined business
The ADT Corporation a leading provider of monitored security, interactive home
and business automation and related monitoring services in the United States and
Canada, today announced that it has entered into a definitive agreement to be
acquired by an affiliate of certain funds managed by Apollo Global Management
and co-investors and merged with a subsidiary of Prime Security Services
Borrower, LLC (with its subsidiaries, "Protection 1"), a leading
full-service business and home security company in the United States also owned
by the Apollo Funds, for $42.00 per share in cash.
"The combined company will be a market leader with a powerful brand and scale
resulting in an enhanced overall customer experience," said Timothy J. Whall,
President and CEO of Protection 1, who will be the CEO of the combined business
following the closing of the transaction. "In addition, Protection 1’s
robust commercial presence will speed ADT’s expansion into the commercial sector
supported by increasing commercial sales and technical skills across a well
matched national footprint." See full press release below.
Regional grocer fights crime and poor service
Tops Markets, a 167-unit supermarket chain based in Williamsville, New York, is
leveraging advanced analytics to transform both its loss prevention and customer
Tops is utilizing the sales module from analytics provider Profitect to
supplement legacy reporting approaches for improved sales, reduced costs and
enhanced customer experience. Profitect integrated Tops' legacy POS data to
identify shrink the retailer had previously missed. In addition, merchandisers
were provided with category management analytics to identify product and store
Federal Government Does Not Have Standards for Employers on Active Shooters
OSHA - "There are currently no specific standards for workplace violence."
According to the Occupational Safety and Health Act (OSHA), employers are
required to provide a workplace "free from recognizable hazards that are causing
or likely to cause death or serious harm to employees." The rule means many
bosses need a violence prevention plan if there had been a foreseeable threat at
work. Two common examples of such a threat would be: a domestic violence
situation that threatens to enter the office, or a disgruntled employee who has
said something that raises concern.
The federal government does not lay out any specific examples of what to do in
response to these threats. OSHA makes that explicit on its website: "There are
currently no specific standards for workplace violence."
Fewer Than Half of U.S. Employers Offer Support Following Workplace Trauma
Layoffs and workplace violence top list - most stressful events facing U.S.
U.S. companies spend billions each year to provide wellness initiatives,
employee assistance programs and flexible working arrangements for their
employees. But according to the results of a new national poll measuring the
impact of traumatic workplace events, most employers fall short of providing
emotional support for their employees when it's most needed most.
The poll found that 53 percent working Americans have experienced a traumatic
event while on the job. But among those, less than half (46 percent) said
their employer offered any type of support to help them grieve, cope or recover
in the aftermath. At the same time, two-thirds of employees (67 percent)
responded that counseling or emotional support from their employer
following a traumatic or tragic workplace event is something they would consider
a valuable benefit.
The poll asked respondents to rank the workplace events that caused the most
trauma, stress and anxiety. The top four are as follows:
1. Employer announcing layoffs/job losses (28 percent)
2. Workplace violence/criminal activity in the community (25 percent)
3. Death of a colleague/co-worker (19 percent)
4. Natural disaster impacting the workplace (14 percent)
Women ranked workplace violence/criminal activity in the community in the top
spot on this list (31 percent compared to 18 percent for men). Men ranked
death of a colleague/co-worker second among these choices (24 percent compared
to 15 percent for women). Millennials, defined here as employees age 18 to 29,
reported that an employer announcing layoffs/job losses was far and away the
most traumatic of these events - 51 percent ranked it in the top spot.
When people need help and support the most, they remember if they get it, she
explained, adding, "When they don't, well, they remember that, too."
MD: Panera Reopens After Fatal Shooting Of 2 Deputies; Support of Local Law
Panera restaurant where a deputy was shot and killed last week reopened Tuesday
with the support of local law enforcement. Harford County Sheriff Jeffrey Gahler
visited the Panera Tuesday morning to support the store and thank employees
Monday, hundreds paid respect to Senior Deputy Patrick Dailey, who was shot
inside the eatery after he approached 68-year-old David Evans, who was wanted in
Harford County. After shooting Dailey, Evans fled and then fatally shot Senior
Deputy Mark Logsdon before he, too, was shot and killed by other deputies.
U.S. cargo thefts in 2015 drop 6% in volume and 21% in value compared to 2014:
FreightWatch International (FWI) recorded 754 cargo thefts throughout the United
States in 2015, representing a 6% drop in volume and a 21% decrease in value
when compared to 2014. The average value of these thefts was US$184,101.
Although the total number of incidents fell, the threat of cargo theft continues
to grow in the United States due to increased organization and innovation on the
part of cargo thieves, as they broaden their geographical areas of operation and
improve their methods to avoid detection and capture."
In 2015, 74% of all thefts in the U.S. occurred in the top five states -
California, Florida, Texas, New Jersey and Georgia. California, logging 19% of
total theft for the year, experienced a 5% drop in cargo theft volume over 2014,
but reclaimed the top spot from Florida who last year claimed 21% of thefts and
the top spot.
In terms of the most stolen products, for the sixth consecutive year, "food and
drinks" was the product type most often stolen, accounting for 24% of all
reported cargo theft. Electronics, currently in second place after recording 15%
of total thefts, had been on the rise for several years, but logged a decrease
of 6% compared to 2014. Maintaining third position was "home and garden,"
logging 12% of thefts last year. canadianunderwriter.ca
January Tourist Spending in France Down 20.8%
French Attacks Curb Tourist Spending in Europe
Global tourism spending rose 3 percent, the weakest monthly increase since
August 2014. Spending by Chinese tourists increased 11 percent in January - a
slowdown versus December and also the weakest result since August 2014.
Suggesting the terror attacks in Paris last November have had a sobering effect,
Chinese spending in Europe declined 12.9 percent.
The impact of the Paris attacks seems to be intensifying, with November
spending falling 2.6 percent in November, 8.3 percent in December and 20.8
percent in January, according to Global Blue, which now releases data by
"All other countries in the region have also seen a decrease in traffic since
November 2015, which aligns with the comments made by tour operators and the
brands stating that tourists have diverted travel away from Europe on the back
of terror threats," the report said.
Tourism can account for as much as 70 percent of sales for European luxury
firms such as Ferragamo, Richemont and Prada, Barclays noted.
Editors Note: With NYC so dependent on tourism spending and especially
the Chinese tourist, one has to wonder how it impacted January sales. Last
Quarter Lundgren mentioned it in his quarterly sales call with Wall Street. If
these numbers hold true in the U.S. we have a real problem brewing for the first
quarter for the luxury retailers and the department stores. Which may even lead
to more layoffs in April - May.
Kroger eyes takeover of The Fresh Market chain for $1.4 Billion
Not counting acquisitions, Kroger has notched a stunning 12 straight years of
growing sales at its nearly 2,800 stores. But now, thanks to its financial
strength, the Cincinnati-based supermarket giant is growing increasingly by
taking over rivals too. This week, Kroger was named as a potential suitor for
struggling upscale grocer. The Fresh Market, a Greensboro, North Carolina-based
company that has been shopping itself around for sale since fall. Besides a
handful of private equity firms, Kroger is only industry player viable to make
the deal, which could run about $1.4 billion.
Big Chill May Have Benefited Retailers
Everybody Rushed Inside to Buy Winter Apparel
Gold, who visited the King of Prussia Mall in Pennsylvania, noted that February
isn't the highest-volume month of the year. Yet the center "was crowded to the
point where it looked like Christmas. It was a great week to clear
winter-related items. A bunch of apparel specialty stores had ample inventory of
winter products." wwd.com
Africa: Transnet National Ports Authority introduces state-of-the-art $53
Million Port Security System
In a statement, TNPA said the $53 Million systems would help safeguard customer
cargo, port users, as well as Transnet's own port assets, staff and contractors.
The newly-renovated control room, which is located at the Port of Durban, went
live on February 12. The CCTV system is integrated between all port sites, as
well as the head office, in order to give a bird's eye view of the port security
environment. It comprises of 2,100 high definition cameras across the various
sites, which is more than double the previous 864, as well as long range
cameras to monitor all port channel entrances and outer anchorage's.
blame Prop 47 for Rise in Violence: Shoplifters caught on camera assaulting JC Penney LP Agent
in Fresno, CA
A couple of shoplifters were caught on camera assaulting a JC Penney LP who
tried to stop them. Fresno police say this type of crime is on the rise and Prop
47 is making it tough to keep small time thieves off the street. Surveillance
cameras captured a struggle inside the Fashion Fair Mall. Fists were flying,
clothes were knocked off the racks and the violence, police say, turned a petty
theft into a robbery. It started in the Sephora section of the JCP store. Two
women appeared to be looking at make-up. The cameras followed one of them
testing products, walking away and slipping them into her purse. Employees
caught up with the women near the exit. One was punched from behind and bit,
according to police-- all for roughly $200 worth of makeup.
Sgt. Hudson says
it's one of three separate robberies from last week where employees were
threatened-- even worse, he says, this type of crime is up 42 percent from last
year and he blames Prop 47. "Now, with prop 47 being the law, we're not able to
arrest people for burglary," Sgt. Hudson said.
Jos. A. Bank down 31.9% in same-store sales Q4 -
details due March 9
Burberry, Children's Place Sued Over Sham Outlet
Uniqlo brings hijab line to the U.S.
Nation's favorite fashion retailers
3-H&M and Ross Dress for Less Tied
Quarterly Same Store
The Tile Shop Q4 comp's up 9.8% with net sales up 13.5%
Genuine Parts Company Q4 automotive group down 2% with sales down 4%
bebe stores Q2 comp's down 2.5% with net sales down 5%
Build-A-Bear Q4 comp's down 5.6%