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Texas Federal Judge Blocks FTC’s Noncompete Rule
A Texas federal judge recently overturned the Federal Trade Commission’s (FTC) ban on noncompete agreements, which was scheduled to go into effect on Sept. 4.
In her opinion, Judge Ada E. Brown of the U.S. District Court for the Northern District of Texas concluded that the antitrust agency “lacks statutory authority” to ban most noncompete agreements, and that the rule issued by the FTC was “arbitrary and capricious.”
Judge Brown had temporarily blocked the ban in July. Her decision on Aug. 20 renders that injunction permanent, and nationwide in scope.
Image by Arek Socha from Pixabay
The FTC has projected that eliminating noncompete agreements could boost workers’ earnings by more than $400 billion within the next decade. These agreements currently impact about 30 million Americans — approximately one in five workers — falling under the FTC’s jurisdiction, which covers antitrust and consumer protection matters.
On its website, the FTC stated it is considering an appeal to Judge Brown’s ruling. “The decision does not prevent the FTC from addressing noncompetes through case-by-case enforcement actions,” the agency said.
A Dallas-based tax firm, Ryan, immediately sued the FTC in April after it voted 3 to 2 to adopt the noncompete ruling. The U.S. Chamber of Commerce then joined the case as a plaintiff, along with the Business Roundtable and two Texas business groups.
The Chamber of Commerce said the decision set a dangerous precedent for government micromanagement of business and could harm employers, workers and the U.S. economy. Business groups also argued that the ban would limit their ability to protect trade secrets and confidential information.
If the FTC chooses to appeal, the case would go before the U.S. Court of Appeals for the Fifth Circuit in New Orleans. Any ruling by the Fifth Circuit could then be appealed to the U.S. Supreme Court, potentially altering the ultimate outcome of the FTC’s noncompete ban.
Although the FTC’s noncompete ban is unlikely to take effect in the near term, the agency said it still retains the authority under Section 5 of the FTC Act to pursue enforcement actions on a case-by-case basis. //
A new national survey found that 84 percent of K-12 educators and administrators believe that school safety directly impacts student achievement.
// Source: CENTEGIX
84%
Panic Buttons Aid Rapid Response in Apalachee High School Shooting
During the Sept. 4 shooting at Apalachee High School in Winder, Ga., teachers activated personal emergency response system (PERS) panic buttons to alert law enforcement, a move credited with potentially helping save lives. The system, introduced just a week earlier, enabled officers to respond quickly and bring the situation under control, according to authorities.
The panic buttons, manufactured by the Atlanta-based company Centegix, enabled authorities to potentially track the exact location of those who pressed them through maps displayed on officers’ mobile devices. A 14-year-old student, now facing four counts of murder, has been charged in the shooting and will be tried as an adult. Nine other people were injured and taken to hospitals. They are expected to make full recoveries.
Image by Franz P. Sauerteig from Pixabay
According to the Georgia Bureau of Investigation website, a school resource officer apprehended the suspect within six minutes of the first report of the shooting.
The panic buttons, which resemble ID cards and are typically worn on lanyards, use private networks within schools rather than relying on cell signals, making them accessible and easy to use for staff members.
“Teachers wear badges that have panic alert buttons and are to able press the button to alert law enforcement of an incident,” according to the Georgia Bureau of Investigation. “This system has been active for about a week before the tragedy at Apalachee High School. Several teachers pressed the alert buttons.”
A national survey conducted by Centegix found that while 77 percent of K-12 educators and administrators believe that school safety significantly impacts staff retention and recruitment, only 33 percent feel that their school or district highly prioritizes staff safety.
In an interview with CNN earlier this year, Centegix CEO Brent Cobb explained that the company developed its CrisisAlert technology after the 2018 Parkland high school shooting in Florida, aiming to provide teachers and administrators with a quick and discreet method to request assistance.
“Time equals lives,” he told CNN. “And you need everyone to know immediately” that a crisis is taking place.
When a lockdown is initiated, the CrisisAlert system triggers several automated actions: pre-recorded messages play over the intercom to notify the entire campus, while safety personnel, such as school resource officers, are informed of the incident's location.
According to Cobb, in certain school districts, the system is also linked with local law enforcement, allowing it to automatically contact 911 and relay the exact location of the emergency to officers. This was the case in Barrow County.
Cobb emphasized that the primary goal is to reduce police response times, an issue that gained significant attention after the 77-minute delay in responding to the shooter at Robb Elementary School in Uvalde, Texas. //
August 2024
Overall Rating of Current Business Conditions of Company
Most security leaders have a positive view of the state of the industry, according to the July/August Security Market Index survey, with integrators being particularly bullish. When asked how they would rate current business conditions for their company, 74 percent of survey participants said either “excellent” (22 percent) or “good” (52 percent).
// Source: SIA
New York State Enacts Law Requiring Panic Buttons for Large Retailers
New York Governor Kathy Hochul recently signed legislation mandating corporate retailers to enhance safety measures for their employees, including requiring major chains to install panic buttons at all locations throughout New York State.
The Retail Worker Safety Act (RWSA) also requires retailers to implement programs to prevent workplace violence and provide training to employees on de-escalation, active shooter drills and emergency procedures.
The legislation was signed into law on Sept. 4 and will go into effect after 180 days.
New York Governor Kathy Hochul signs the Retail Worker Safety Act (RWSA) into law at the New York City Central Labor Council in New York City on Sept. 4.
Image courtesy of RWSA
“The preventative measures this law provides will help stop violence and harassment before it starts, but even more importantly, will more safely assist workers in getting help quickly in the event of an emergency,” stated Stuart Appelbaum, president of the RWDSU. He added, “Retail workers should not go to work every day in fear; this law goes a long way toward ending that.”
Language in the bill (SB S8358C) defines “panic button” as “a physical button that when pressed immediately contacts the local 911 public safety answering point (PSAP), provides that PSAP with employee location information, and dispatches local law enforcement to the workplace. A panic button may be a button that is installed in an easily accessible location in the workplace, or a wearable or mobile phone-based button.”
The RWDSU said it conducted a membership survey related to workplace violence and found the following:
- Over 80 percent of respondents are worried about an active shooter coming into their workplace.
- Nearly two-thirds of respondents experienced verbal harassment or intimidating conduct from a customer, co-worker or manager within the last year.
- Only 7 percent of respondents agreed with the following statement: My employer has made changes in the workplace after a violent incident in order to make my work safer.
- Nearly 75 percent of respondents would feel safer if they received regular training on how to be safe in the workplace, including understanding the risks, how to reduce those risks and what to do in the event violence occurs.
“Based on these findings, as well as the reality of mass shootings in retail settings and the increase in daily violence, it is clear that we have reached a crisis point in this industry and it’s time to act,” the RWDSU stated.
The law requires retailers with 10 or more employees to adopt a violence prevention plan and maintain records of violent incidents for at least three years. Any employer with 500 or more retail employees nationwide must provide panic buttons throughout their workplace. If the employer opts to use wearable or mobile phone-based panic buttons, they must supply these devices to all of their retail employees.
Mobile phone-based panic buttons may only be installed on employer-provided equipment, and wearable and mobile phone-based panic buttons cannot be used to track employee locations except when the panic button is triggered.
The legislation was opposed by many in the retail industry, including Walmart, the National Retail Federation (NRF) and the Food Industry Alliance of New York State (FIA). In June, Walmart criticized the panic button idea, citing concerns about the likelihood of false alarms. Other stakeholders expressed worries about the associated costs. The New York Police Department Community Affairs Bureau has said 911 calls would be more effective to communicate with law enforcement than panic buttons. — Rodney Bosch, Senior Editor //
Carrier Agrees to Sell Commercial & Residential Fire Business for $3B
Carrier Global Corp. has entered into a definitive agreement to sell its Commercial and Residential Fire business to an affiliate of Lone Star Funds for an enterprise value of $3 billion.
In an announcement, Carrier Chairman and CEO David Gitlin indicated that selling the Commercial and Residential Fire business is a significant part of Carrier’s strategy to streamline operations and focus on becoming a more agile, high-growth company with a strong commitment to sustainability.
“I am so proud of what our deal and business teams have accomplished. We now have executed deals on all our divestitures, all signed within about a year of announcement, with a combined value of over $10 billion, representing a mid-teens EBITDA multiple in aggregate,” Gitlin said. “This reflects tremendous dedication by so many, and I could not be more appreciative of our team's tireless efforts and great work.”
The sale marks a critical milestone in Carrier’s portfolio transformation, following the acquisition of Viessmann Climate Solutions in January and the successful divestitures of its Industrial Fire and Global Access Solutions businesses, the announcement stated. The Commercial Refrigeration sale is said to be on track to close around the end of the third quarter. Closing of the Commercial and Residential Fire business is expected by the end of 2024, subject to regulatory approvals and customary closing conditions.
Following the acquisition of Viessmann Climate Solutions, Carrier has reduced its net debt by over $5 billion through the repayment of outstanding term loans and notes, including last week’s successful tender for additional outstanding debt, according to the announcement. As a result of significant de-leveraging this year, and consistent with prior messaging, Carrier said it expects to redeploy the estimated $2.2 billion in net proceeds from the transaction toward share repurchases.
Carrier first announced in April 2023 it would exit its Fire and Security businesses. Among the company’s fire/life-safety brands are Kidde Commercial and Kidde Fire Systems, Edwards, GST, Autronica, Marigff and Det-Tronics.
Established in 1995, Lone Star Funds is a global private equity firm that invests in real estate, equity, credit and other financial assets. Lone Star has organized 24 funds with aggregate capital commitments totaling approximately $92 billion, according to its website.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisor to Carrier. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP are providing external legal counsel. //
Resideo Q2 Results: ADI Sales Climb With Help From Snap One Acquisition
Resideo Technologies recently released financial results for the second quarter of 2024, highlighting a growth in sales within its ADI Global Distribution division.
The company reported total sales of $1.59 billion for the quarter, a slight 1 percent decrease compared to the same period last year. Net profit came in at $30 million, a decline from the $50 million reported in the previous year. Adjusted EBITDA stood at $175 million, down from $155 million a year ago.
Resideo reported second quarter net income of $30 million and adjusted EBITDA of $175 million, which was above the high end of its outlook range.
Image courtesy of Resideo
The ADI Global Distribution unit experienced a 4 percent year-over-year increase in sales, reaching $959 million. The growth was partly driven by the contribution of $45 million in revenue from Snap One, following Resideo’s acquisition of the company earlier this year. Additionally, ADI’s eCommerce channel saw an 8 percent year-over-year increase.
Resideo pointed out that ADI experienced volume growth in several sectors, such as fire, intrusion, Datacom and professional audio-visual (A/V). However, these gains were offset by declines in video surveillance and residential audio-visual compared to the previous year.
ADI’s gross margin for the quarter was 19.4 percent, a 20 basis point improvement year-over-year, while its operating profit decreased by 13 percent to $62 million. Adjusted EBITDA for ADI also dropped slightly to $77 million from $79 million in the same quarter last year.
In the Aug. 8 earnings announcement, Resideo President and CEO Jay Geldmacher said the second quarter results demonstrated the substantial progress the company has made in transforming the structural profitability profile of the business and in executing on value-creating strategic transactions.
“Products and Solutions delivered gross margin and Adjusted EBITDA margin at the highest levels since first quarter 2022,” he added. “The business accomplished these results in a market environment constrained by higher interest rates and low housing turnover. ADI continued to make progress in driving key strategic initiatives around e-commerce and exclusive brands sales and saw improved customer activity as the quarter progressed.”
In a leadership update, Resideo announced the appointment of Mike Carlet, the former CFO of Snap One, as the new CFO of Resideo, effective Aug. 9. Tony Trunzo, the outgoing CFO, will remain with the company until March 2025 to ensure a smooth transition. — Rodney Bosch, Senior Editor //
PE Firm Apax Partners Acquires Altus Fire & Life Safety
Altus Fire & Life Safety, a provider of regulation-mandated fire and life-safety services in the Northeastern U.S., has been acquired by Apax Partners, a London-based private equity firm.
Financial terms of the transaction with AE Industrial Partners, a private equity firm specializing in national security, aerospace and industrial services, were not disclosed.
Founded in 1993 and headquartered in New York, Altus provides a wide range of services and solutions. These include testing and inspection, service and repair, drills and training, monitoring, upgrades and installation across various product categories, such as fire alarms, sprinklers and security systems. In the past few years, the company has grown rapidly both organically and via strategic M&A, adding new service lines and geographies.
“The acquisition of Altus by the Apax Funds represents a unique and exciting opportunity for the future of our organization and our employees,” stated John Adams, CEO, Altus Fire & Life Safety. “Apax brings a wealth of experience and resources, which are designed to further enable our rapid growth and scale into one of the nation’s leading providers of fire and life safety services. We are very thankful for the partnership with AE Industrial Partners over the past few years, and we believe this new chapter gives us the ability to fully execute on the vision which was the catalyst of Altus’ inception.”
Austen Dixon, vice president at AE Industrial Partners, explained, “When we acquired Altus in 2021, our vision was to create a leading, innovative brand in the fire and life safety sector, while expanding the company’s footprint. We are proud of the work we have done to drive revenue, streamline operational functions, capitalize on synergies and realign the sales strategy to drive profitability and scalability.”
The Altus platform currently consists of nine brands including Adcock’s Systems, Alarm & Suppression, BK Systems, Croker Fire Drill, Cross-Fire & Security, Fire Systems Inc., Northeast Fire Systems, Crime Intervention Alarm, and Priority Fire and Security.
Ashish Karandikar, a partner at Apax, commented that the PE firm has been tracking the fire and life safety space for several years and has been impressed by Altus’ growth journey to date. “We are thrilled to collaborate with John and the entire Altus team as we support the company in this next growth phase, solidifying its leading position in the fire and life safety services industry,” he added.
Altus was advised by Lincoln International. Apax was advised by William Blair and Solomon Partners. //
Pye-Barker Acquires Phoenix Fire Systems, Now Operates in 41 States
Pye-Barker Fire & Safety has acquired Phoenix Fire Systems, based in Frankfort, Ill., with five other branch locations in Wisconsin, Kansas and Colorado.
Founded in 1997 by Kirk Humbrecht, Phoenix Fire Systems specializes in fire suppression systems for mission-critical applications. The company installs, inspects, tests and maintains special hazard systems, as well as integrated smoke detectors, fire alarms and mass notification systems.
Kirk Humbrecht, left, owner and president of Phoenix Fire, with Chuck Reimel, Pye-Barker's vice president of business development.
Image courtesy of Pye-Barker
In this transaction, Pye-Barker also gains Basic Fire Protection, a fire extinguisher service and testing company founded in 1978, and FESSCO, founded in 1994 and specializing in vehicle fire suppression systems and extinguishers. Both Illinois-based companies were previously acquired by Phoenix Fire and Humbrecht.
“I'm proud of the reputation Phoenix Fire Systems has built in the industry, one that prioritizes the safety of our customers through cutting-edge technology, expert staff and customer-centered service,” said Humbrecht, owner and president at Phoenix Fire. “Pye-Barker is the right choice for a partner. I know they'll continue to care for our customers like family, just as we have these past 27 years.”
With this addition, Pye-Barker now operates in 41 states across the United States.
“Phoenix Fire’s team knows their craft and their customers, and that’s a winning combination for a successful business,” said Bart Proctor, CEO at Pye-Barker. “Working with the industry’s best has helped us grow Pye-Barker to the nation’s leader in fully integrated life safety systems, and we’re proud to move into new communities with Phoenix Fire, Basic Fire and FESSCO as part of the family.”
Phoenix Fire’s team members will continue to serve customers locally.
Nelson Mullins Riley & Scarborough LLP represented Pye-Barker in the transaction. //
Sciens Building Solutions Acquires Western Fire Protection Near San Diego
Sciens Building Solutions, based in San Francisco, announced the acquisition of Poway, Calif.-based Western Fire Protection (WFP), adding its growing portfolio of companies.
This is the latest acquisition from Sciens helps to further expand the company’s presence in the Southern California market. The transaction will also provide WFP and its customers with even deeper resources and expertise, as well as the ability to leverage Sciens’ growing presence across North America.
“Sciens’ solid technical expertise and comprehensive building solutions, combined with Western’s capabilities, allows us to develop more comprehensive offerings for the important San Diego market,” said Lyle Hall, president of WFP. “Sciens is thoughtfully growing across the country and has earned a great reputation for helping take companies to the next level, which can only benefit our customers and employees.”
WFP was established in 1989 in San Diego, where it has been supporting fire alarm and sprinkler clients in various markets, including pharmaceutical, multi-family complexes, higher education and casinos.
“We proudly maintain Sciens’ fun, growth-focused journey, which continues with the addition of Western Fire Protection with its excellent reputation in the San Diego area as a customer-first fire safety and sprinkler leader,” said Sciens CEO Terry Heath. “Combined with our recent area additions of Low Voltage Integrated Systems and Standard Electronics, plus our established Time & Alarm Systems business, we can now self-perform the entire offering of our recently announced Sciens Service Suite (S3) giving customers a single source for their fire and life safety needs.”
Backed by The Carlyle Group, Sciens Building Solutions is a fire and life safety company, focusing on the design, installation, provision of maintenance and inspection services for fire detection, fire sprinkler and security systems across a variety of commercial vertical markets. //
Cook & Boardman Acquires Brymer Communication Services
The Cook & Boardman Group, a specialty distributor of commercial entry solutions and systems integration services, has acquired Brymer Communication Services, headquartered in Hutto, Texas, for undisclosed terms.
Founded in 2008, BryComm specializes in design engineering, installation, and maintenance of multiple types of infrastructure networks and proudly serves customers throughout the Lone Star State.
“We are thrilled to welcome BryComm to the Cook & Boardman family,” said Cook & Boardman CEO David Eisner. “Their strong reputation in the industry and talented group of personnel will strengthen our position in the market and drive continued growth. We are looking forward to working with Cory and the rest of their team to achieve even greater success in the future.”
BryComm will continue to operate under the name and customer contacts will remain unchanged as a result of the acquisition, according to an announcement.
“BryComm has a history of fostering great relationships with all its stakeholders. We’ve always had an aggressive growth mindset, expanding rapidly without sacrificing the core values that made us successful,” stated Cory Brymer, owner and CEO of BryComm. “Partnering with Cook & Boardman will fuel that growth while strengthening the pillars upon which BryComm’s reputation was built. This collaboration will provide exciting new opportunities for our employees, customers, and partners. We are thrilled to join the Cook & Boardman team as they transform the industry.”
Platinum Equity acquired a majority interest in Cook & Boardman in 2023. Littlejohn & Co. remains a significant minority shareholder. BryComm represents Cook & Boardman’s seventh acquisition under Platinum Equity’s ownership.
K&L Gates LLP served as legal advisor to Cook & Boardman. //
Securitas Technology Launches Apprentice Program in Collaboration With SIA
Securitas Technology Corp., has launched a new apprentice program developed in partnership with the Security Industry Association (SIA).
The Securitas Technology Apprentice Program aligns with the company’s key business priority of "Investing in Our People" and reflects a deep commitment to the growth and development of its associates, according to an announcement.
The new initiative offers new technicians a structured path to gaining hands-on experience in servicing and maintaining low-voltage security systems during their first year on the job. The program, currently available in the United States with plans to expand in the future, is said to position Securitas Technology as an industry leader in employee development and client satisfaction.
Image courtesy of Securitas
“At Securitas Technology, our commitment to investing in our people is at the core of our business strategy,” stated Tony Byerly, global president, Securitas Technology and CEO, Securitas Technology Corp. “The partnership with SIA to launch the Securitas Technology Apprentice Program is a testament to our dedication to developing the next generation of security professionals. By providing hands-on experience and guided mentorship, we are not only enhancing the skills of our apprentices but also strengthening the foundation of our industry. This program reflects our unwavering focus on innovation, excellence, and creating a pathway for long-term career growth within the security sector.”
The program also opens significant opportunities for existing employees to serve as mentors, playing a vital role in guiding apprentices through their career journey, according to the announcement. The initiative reinforces the company’s commitment to employee growth, offering competitive pay, career development and a promising future at Securitas Technology.
“Our goal with the Apprentice Program is to provide a supportive environment where our new technicians can thrive,” said Kevin Engelhardt, president of Securitas Technology North America. “Through this program, we are not only enhancing the skills of our technicians, but we are also shaping the future of our workforce which will further differentiate us in the market.”
The partnership with SIA underscores the company’s dedication to setting industry standards and ensuring our employees have access to the best resources and training available, the announcement stated. //
