TVI buys shelter firm SSES for $21.8 million

BUSINESS DIGEST

November 02, 2006|By Stacey Hirsh | Stacey Hirsh,Sun reporter

TVI Corp., a Glenn Dale company that makes first responder systems, said yesterday that it acquired Signature Special Event Services LLC for $21.8 million cash.

The acquisition of privately held Signature Special Event Services, or SSES, brings to TVI a shelter rental company with corporate, sport and government clients. Frederick-based SSES has offices in California, Florida, Kentucky and North Carolina.

"One of the things we've been trying to do as we grow the company is we've been trying to diversify the markets we address, and this does a good job [of that]," said Richard Priddy, president and chief executive officer of TVI. "It also helps us in our current markets."

TVI's products include decontamination systems, power generators and hospital surge-capacity systems that provide shelter or isolation areas for an influx of patients.

SSES' products include temporary housing, flooring, lighting, and mobile kitchens and bathrooms. Its clients include golfing's PGA of America, the National Football League, International Olympic Committee and the American Red Cross.

While some aspects of SSES, such as its government and military services division, are already a fit for TVI, others such as its products for sporting events allow TVI to expand into a new market, Priddy said.

"It gets us into a commercial venue that we frankly don't participate in right now," Priddy said.

TVI, based in Prince George's County, has 100 employees. With the acquisition, SSES' 150 workers will become TVI employees and its administrative and manufacturing facilities will remain in Frederick, according to TVI. Tom Brown, president of SSES, will continue to run its operations.

Shares of TVI fell 4 cents to $2.90 yesterday in trading on the Nasdaq stock market.

"They're a major player in the homeland security and the first responder, first receiver industries, and through Signature's government and military services division, we're able to expand the shelter and equipment offerings," Brown said.

TVI also said yesterday that it expects earnings for the third quarter to reach $1.2 million, or 4 cents per diluted share, compared with $1.0 million, or 3 cents per diluted share for the third quarter of last year.

Revenue for the quarter that ended Sept. 30 is expected to be $9.1 million, up from $7.0 million for the third quarter of 2005. TVI is scheduled to release its earnings today.

stacey.hirsh@baltsun.com

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.