So yesterday a gun company buys another, it’s not nearly as big news as this. Galls, LLC, a veritable powerhouse in the public safety, first responder and private security sector, has merged with Cerritos, California-based Quartermaster, Inc. While this alone is significant, add in this tidbit. Galls was acquired by New York-based private equity firm CI Capital Partners in September of 2011. Now, you begin to see some consolidation by outside investors.
Bob San Julian, Chief Executive Officer of Galls said, “We are very excited to announce the merger of these two industry leaders. Quartermaster’s large customer base will benefit from Galls’ broad product offering, high level of customer service, and East Coast distribution capabilities. In turn, Quartermaster’s highly recognizable private label brand, long-standing relationships with key suppliers, and established West Coast distribution presence will be instrumental as we compete for customers in the public safety products sector.”
Jim Duncan, current Chief Executive Officer of Quartermaster, will become President of the combined company. Mr. Duncan commented, “Quartermaster has achieved tremendous success on its own since 1974. As we look toward our future growth, we realize that joining forces with Galls and forming a national distribution platform is the best means of serving our customers. Galls and Quartermaster share a commitment to the highest standards of quality and customer service, making Galls an ideal partner for us going forward.”
“When we closed the acquisition of Galls last fall, it was our goal to build and position this business for long-term growth and profitability, both organically and through strategic acquisitions,” said Thomas Ritchie, Managing Director at CI Capital Partners. “Quartermaster’s strong brand recognition, marketing capabilities, and experienced sales organization make it an exceptional combination with the Galls platform.”
PNC Business Credit, AEA Mezzanine and PennantPark Investment Corporation provided financing for the transaction.
As the DoD budget shrinks, the LE and first responder markets begin to look even more lucrative. However, it’s not easy money by any means. The market is extremely segmented and it takes a great deal of leg work to reach the multitude of customers. You have agencies and organizations spanning from local to state to federal, all with differing requirements, funding and procurement systems.
