Bates Security on Pye-Barker acquisition: ‘Value proposition’ too good to pass up

YARMOUTH, Maine—Jeremy Bates began 2024 with no intention to sell Bates Security, the family-owned security and alarm systems company that his parents founded 40 years ago. But what Pye-Barker Fire & Safety brought to the table was an offer he could not refuse. On May 21, Pye-Barker added to its ever-growing portfolio of companies by acquiring Lexington, Ky.-based Bates Security. “If you had asked me on Jan. 2, would we be selling our company, the answer would have been no,” Bates said. “But I happened to have a conversation with an unrelated party on Jan. 3 about acquiring us. What that did is plant the seed to my family discussing it.”Bates contacted his company’s broker, Mark Sandler of SPP Advisors, and told him that he was thinking of putting Bates Security on the market.Sandler immediately told Bates who was the clear choice for a buyer.“Within five minutes, he goes, ‘Jeremy, your best bet is Pye-Barker and nobody else,’” Bates said. “The value proposition that Pye-Barker brings to the table – nobody is going to be able to match it. So far as I can tell, that's the truth. We've been very impressed with their entire operation before and after the acquisition.”With the aggressive acquisition strategy that Pye-Barker has implemented since 2016 – nearly 200 companies acquired, including 34 acquisitions in 2024 this far – Bates was very impressed with what Bart Proctor, the company’s CEO, and Eric Garner, president of its Alarm Division, have done to make the transition easier. “I know several of the security dealers that were in my seat and sold their company to Pye-Barker,” he said. “I did my due diligence, and all the promises that Eric and Bart and his team made have transpired with those companies, so we felt very comfortable with it.”Bates cited Pye-Barker’s business-as-usual approach - including keeping his entire staff intact – as an integral component of the sale and transition.“We try to make it a fun, exciting place, hard driving and trying to grow,” he said. “We try to make it a good place to work, so under Pye-Barker, we'll be able to continue to do that.”Proctor sees in Bates Security a “very strong business” that wants “to take it to the next level” and partnering with Pye-Barker gives the company a platform to do just that.“We're extremely excited about Jeremy and his team coming on board with us,” he said. “We have been talking to Jeremy for a while and just waiting for the right transition point.”Bates echoed those sentiments, calling it a “very, very exciting time for Bates Security.”“We're starting a new chapter under the leadership of Pye-Barker - Bart and Eric - and they're going to bring a whole lot more resources to the table than I could ever imagine developing on my own,” he said. “I am just super excited about all the things that we can accomplish under the Pye-Barker umbrella.”Read SSN’s interview with Pye-Barker CEO Bart Proctor.