Paramax Strengthens Fire Safety Industry Team

January 15, 2010

We are pleased to announce that Stephen Summerill has agreed to join Paramax Corporation in the position of Senior Advisor.

Stephen recently served for two years as Senior VP of Business Development with Cleaver-Brooks, Inc., a leading US manufacturer of industrial and commercial steam and hot-water systems. Previously, Stephen held various senior executive and management positions with Kidde plc, the group that focused on the design, manufacture and marketing of consumer, industrial/commercial and aerospace fire protection and safety products and systems. During his 17 years with Kidde, which eventually became a major part of UTC Fire & Security, Stephen was primarily involved with the building of the global Industrial Fire Protection Division through the execution of over 22 separate strategic and infill acquisitions in North, Central and South America, Europe and Asia. He has experience in all aspects of acquisition execution including: justification and financial modeling, negotiations/deal structuring, purchase and sale, and post-sale integration, restructuring and profit improvement.

With the addition of Stephen, Paramax now has a team of three senior executives with an unrivaled depth and breadth of expertise in providing divestment and acquisition services to the Fire Safety Industry, including fire detection and suppression, fire control and fire fighting:

Bob Coleman, Senior Vice President, is the former Chief Financial Officer of Kidde North American Fire Protection Division that encompassed all of the Kidde industrial fire safety companies in North America. During his 16 years at Kidde, he was involved with over 25 M&A transactions, the vast majority of which pertained to the fire safety industry.

Tim Minneci, Executive VP & Managing Director, is the former owner of Lane Fire and Safety, an upper state New York based firm that he developed into a successful fire protection distribution and service business before selling it to Kidde. Prior to owning his own company, Tim was in business development with Figgie International and was very active in the acquisitions of many of the companies that constituted their fire protection division.

Paramax is a sell-side investment intermediary that has developed a broad knowledge of and expertise in the Fire Protection Industry. We know the industry from firsthand experience and have participated on both sides of sales transactions. We have amassed and cultivated a large list of potential buyers (both strategic and investment based) and fully understand the factors that influence the value they place upon individual businesses.
Through our numerous engagements, we have assisted private owners in realizing wealth through the divestiture of their businesses. Over the past twenty years there have been numerous waves of consolidation running through the fire safety industry, both at the product manufacturing and distribution/service level. We fully expect that the consolidation will continue in 2010, driven in part by the expiration of the “Bush Tax Cuts” at the end of 2010 and the need of owners to avoid the subsequent increase in the capital gains tax rates, as well as the requirement of potential buyers, such as larger players in fire protection, to show revenue growth and utilize available funds. We believe that now is a good time to consider divestment opportunities and realize a valuable return on your business.

We would very much welcome the opportunity to discuss with you, in confidence and at your convenience, the process of divestment, as well as providing an indication of realizable value for your business. Please contact us at the following:

Sincerely,

Tim C Minneci
Executive VP & Managing Director