United Technologies buys into security
The security sector, as we've pointed out before, is hot, and conglomerate United Technologies has been an increasingly big player. Security services for large buildings complement United Technologies major air conditioning (Carrier) and elevator (Otis) services, allowing the company to cross-sell to large corporations and real-estate companies.
United Technologies extended that push by announcing the purchase of the Britain's Initial Electronic Security Group (IESG) from UK firm Rentokil Initial. Rentokil is another conglomerate with services centered around hygiene, pest control, and building services. The deal is for over $1.1 billion.
IESG sells high tech security systems, including closed-circuit surveillance intrusion detection devices, fire alarms, and security software. has operations in the UK, France, and the Netherlands. After the buy, United Technologies will be the #2 electronic security company in the UK and France and #1 in the Netherlands.
Rentokil Initial itself has been restructuring. It recently sold off its conferences and manned security divisions, while it in 2006 expanded its pest control (buying US firm JC Ehrlich) and parcel delivery services (acquiring the UK's Target Express). The company is #1 worldwide in pest control. It remains a major player in building services.
United Technologies also has plans to sell off its manned security divisions in the UK and Australia. It previously acquired the Chubb and Kidde security equipment brands, also UK companies.
8:39:12 PM 
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