Pittsburgh-based Vector Security Inc. may have completed a new credit facility valued at $225 million, which includes $75 million in new financing, but it is certainly not going to go spend it all in one place.
Jeffrey Hoffman, vice president of finance at Vector, commented the new capital will be used in three different ways to grow the company’s business. The company plans to make acquisitions, support and grow its dealer program, and foster organic, internal growth through development of new applications.
Hoffman said there aren’t any hard and fast changes coming, but that Vector’s goal is to continue its steady growth, which will include expanding through acquisitions. “We are looking to continue to expand our footprint as an East Coast super-regional company and will continue to explore options to expand in new areas if the right opportunity presents itself.”
Vector’s continued commitment to its multifaceted dealer programs will result in additional expansion as it continues providing services and technology which identifies Vector as an industry leader, Hoffman said. “The selective criteria required to become a Vector Dealer is the greatest asset the Authorized Dealer Program has as we increase our geographic footprint with a commitment to dealer support that is second to none,” Hoffman said. “This has always been the ‘Vector Way.’”
The applications development Vector will fund focuses on business management and making the most effective use of information. “We continue to look at different applications for our customers to help them manage their businesses better,” Hoffman explained. “We’ve developed certain tools internally that are Web-based for commercial customers to view their activity and support to help manage their business.” Specifically, the company is excited about opportunities with mobile technology. Hoffman said the company is investigating these opportunities and “keeping our options open.”
Hoffman also noted that Vector has consistently increased its credit, which isn’t necessarily the norm in a crippled economy. He attributed the company’s ability to be consistently and even increasingly attractive to lenders to equal consistency in its operations. “We’ve been successful over the years as far as making good decisions and adapting to the economy, being fully aware of things in our industry,” Hoffman believes. “We’re very selective with acquisitions and people we do business with. We’ve been very successful at not only growing but growing profitably. We’re recognized as a financially stable company with good leadership and strong focus on customer service to maintain a low attrition rate as compared to our industry. We see that continuing. Our bank group has been very supportive and we’ve shown them good returns and that we’re a solid company.”
In a prepared statement, Pamela Petrow, president of Vector Security, addressed how the company ensured it stayed on a path of intelligent, long-term growth during this recession, “Over the past few years, but especially throughout the recession, Vector Security has been wise about the choices we’ve made pertaining to our position in emerging and declining markets, especially those that were tied directly to the new home construction market,” Petrow explained. “We analyzed the level of declining business opportunities we were expected to receive from these markets and made adjustments as early as spring of 2008 to redirect our energies elsewhere. That included both our branch offices that served custom and tract home builders, as well as our National Accounts Division, which also has a lot of business dealings in the home improvement industry.”
It follows that — though historically this is the largest credit facility the company has had and it does open doors for expansion — the business plan that served Vector so well isn’t expected to change anytime soon. “This is the type of company we’ve always been. It’s always been the base for how we ran and grew our business: through acquisitions, our dealer program and internally,” Hoffman commented. “We’ve always worked to grow that and make sure we’re well-positioned to continue to grow our business.” — By Sabrina Gasulla, Associate Editor.