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Stanley buys its way into Canadian residential security market

First National AlarmCap Income Fund announced that it plans to sell substantially all of its assets to Canadian subsidiary of Stanley Black & Decker Inc. for $59.7 million in cash, then wind up the fund.


August 6, 2011
By The Canadian Press

The agreement provides for the sale to Stanley Canada Corp. of 100 per cent of the shares of Microtec Enterprises Inc., which holds the operations and business assets of the alarm services company.

As soon as practicable following the sale, which is subject to unitholder approval, it is expected that the fund will be wound up and its assets distributed to unitholders, the company said in a release.

Net cash proceeds are to be distributed to unitholders on windup after repayment of bank debt, transaction and windup costs estimated at between $5.25 and $5.50 per class A unit.

Trustees and officers holding 13 per cent of the units of the fund have entered into voting and support agreements in favour of the sale. A termination fee of $1.75 million will be payable to Stanley if the deal fails to go through.

It is expected that the Microtec business unit will continue operations in substantially the same manner under the new ownership.

AlarmCap provides security alarm services to more than 79,000 residential and commercial customers in Canada, offering a suite of intrusion, smoke detection and environmental services.