SOURCE: Somerset International Group, Inc.

August 05, 2008 09:30 ET

Somerset International Group Announces Letter of Intent to Acquire Distributor of Commercial Fire and Security Products and Services

BEDMINSTER, NJ--(Marketwire - August 5, 2008) - Somerset International Group, Inc. (OTCBB: SOSI), a security technology holding company, today announced it has signed a letter of intent to acquire a New Jersey based distributor of commercial fire and security equipment. Unaudited revenues for the entity for the twelve months ended December 31, 2007 were approximately $10.5 million. The purchase price is $6.5 million, comprised of approximately $5,000,000 in cash at closing, a $1,000,000 seller note, and a $500,000 three year earn out.

For the purchase price, the seller will deliver, at closing and subject to purchase price adjustments, $550,000 of trailing twelve months earnings before interest, taxes, depreciation, amortization, and owner expenses, as well as $750,000 of net current assets (defined as current assets minus total liabilities). The closing is subject to customary due diligence, approval by both parties of a Definitive Agreement, as well as receipt of audited financial statements from the company and Somerset International Group obtaining satisfactory financing to complete the transaction. No assurance can be given that this acquisition will be consummated.

John X. Adiletta, President and Chief Executive Officer of Somerset, commented, "This latest acquisition, upon completion, will further expand our product set and advances our strategy of acquiring complementary businesses in the personal and enterprise security space. Upon completion of the acquisition, we will have more than doubled our revenue and customer base and expect to be at a revenue run-rate in excess of $17.0 million across our portfolio companies. We look forward to leveraging the capabilities of this latest acquisition along with our other portfolio companies, while eliminating redundant administrative expenses -- bringing us one step closer to profitability on a consolidated basis."

Mr. Adiletta continued, "We have continually demonstrated our ability to acquire businesses for favorable valuations and look forward to continuing our aggressive acquisition strategy. Specifically, we will continue to target complementary businesses with high organic growth rates and solid customer bases, with the ability to cross-sell the respective products across our portfolio companies."

About Somerset International Group, Inc.

Somerset International Group, Inc. finds undervalued technology investments aligned around the exponential growth in concern and demand for security and the acquisition of profitable or near term profitable private small- and medium-sized businesses that provide proprietary security products and solutions for people and enterprises -- from personal safety to information security. Additional information about the company is available at: http://www.somersetinternational.com.

About Secure System, Inc.

Secure System, Inc. provides personal alarm systems, wireless transmitters and receivers, and personal alarm locators. The company currently serves colleges and universities and medical and mental health facilities. Its products are also easily adaptable for office campuses, residential facilities, and correctional facilities. The system works by providing an individual with a wireless personal alarm locater with which they can summon help and be located by the pressing of a button. Additional information about the company is available at: http://www.securesysteminc.com.

About Meadowlands Fire, Safety, and Electrical Supply Co., Inc./Vanwell Electronics, Inc.

Meadowlands and Vanwell specialize in the distribution, sale, installation and maintenance of fire and security equipment and systems that include fire detection, video surveillance, and burglar alarm equipment. Vanwell exclusively distributes Siemens Fire Safety Products & Systems. Meadowlands and Vanwell have similar product availability from distinct manufacturers. This affords the opportunity to provide a wide array of specified equipment with the flexibility to offer cost effective alternates when appropriate. The products encompass complete lines of fire, CCTV, communications and PA systems; services include maintenance contracts, monitoring services and system engineering. Additional information about the company is available at: http://www.meadowlandselec.com.

About Fire Control Electrical Systems, Inc.

Fire Control Electrical Systems, Inc. specializes in the distribution, sale, installation, and maintenance of Honeywell Life Safety fire and security equipment and systems that include fire detection, video surveillance, sound systems, and burglar alarm equipment. The products encompass complete lines of fire communications systems; services include maintenance contracts, monitoring services and system engineering. Additional information about the company is available at: http://www.firecontrols.com.

Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business, including those set forth under the caption "Risk Factors" in our most recent Registration Statement on Form SB-2 dated December 6, 2006 filed with the SEC and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.

Contact Information

  • Contact:

    Somerset International Group, Inc.
    John X. Adiletta
    908-719-8909