Westinghouse plans expansion in home security

January 28, 1992|By Ted Shelsby

The local division of Westinghouse Electric Corp. announced yesterday a seven-year partnership with a unit of New York Life Insurance Co. that could provide $50 million to expand Westinghouse's home security business.

The arrangement calls for an equity investment from NYLIFE Bridge Investor Inc., a subsidiary of New York Life, and a loan from a London bank, both of which Westinghouse would use to buy the accounts of regional security companies across the country, said Ric Campbell, manager of Westinghouse Electronic Systems Group's security systems unit in Linthicum. An account is a home with a security service.

The Linthicum division moved into home security in 1990 as part of a diversification to lessen its dependence on military contracts.

Mr. Campbell said that under the agreement with NYLIFE, the insurance company would own the security accounts that were bought and Westinghouse would receive a fee for managing them.

After collecting the service fees, Westinghouse would keep an operating fee and pay the rest to NYLIFE, some of which would be used to repay the bank loan.

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