Visualant Inc., Seattle, Wash., announced the completion of its acquisition of TransTech Systems Inc. (TransTech) of Aurora, Ore. as part of a new growth strategy.
TransTech is a distributor of access control and authentication systems serving the security and law enforcement markets. The company recorded revenues of $10 million in 2009. Their management team is lead by TransTech founder, Jim Gingo, an industry veteran and one of the early members of the Document Security Alliance, an organization co-founded by the United States Secret Service and concerned industry representatives after the events of Sept. 11. He sits on the board of the Security Industry Association. Gingo is also joining the Visualant board of directors with the closing of the acquisition.
According to Visualant CEO, Ron Erickson, Visualant’s strategy is to accelerate market entry and penetration through the acquisition of well-operated and positioned distributors of security and authentication systems such as TransTech, thus creating a natural distribution channel for products featuring the company’s proprietary Spectrum
Pattern Matching (SPM) technology.
“We believe following this strategy accelerates the company’s access to national distribution channels and an established base of customers,” Erickson commented. “We can create new, and enhance existing products based on Visualant’s SPM technology. This will stimulate product sales and generate new revenue, enhancing profitability across the entire distribution network. We believe we can quickly increase the value of both our technology and of the distribution companies we acquire which will provide a tremendous value to our shareholders.”
TransTech CEO and industry veteran, Jim Gingo, agrees. “This is truly a case in which the whole is greater than the sum of the parts,” said Gingo. “I believe Visualant’s SPM technology can create the next generation of more powerful sensors and authentication products eagerly sought by law enforcement and security professionals in this $76 billion worldwide market.”
“Visualant’s strategy, over the next 18 to 24 months, is to generate combined annual revenue in the range of $35 to $50 million, through the acquisition of other high quality companies complementary to TransTech,” Erickson stated.