CPP Security to Buy Rival Pinkerton’s

CPP Security Service said Thursday that it will acquire its venerable rival Pinkerton’s Inc., in a move that would double its size.

The price was not disclosed. CPP, a privately held security firm based in Van Nuys, has annual revenue of about $250 million. Pinkerton’s, a unit of American Brands and the nation’s second-largest security firm, had estimated sales of about $310 million. (The largest security firm at present is Burns International Security Services of Paramus, N.J.)

CPP, also known as California Plant Protection, is one of the fastest growing security firms in the country.

Unlike its competitors, it has avoided costly moves into electronic surveillance, prefering to stick with its traditional line of business, protecting factories and office buildings.

Boosts Work Force

CPP and Pinkerton’s have operations in the United States and Canada. Pinkerton’s also has operations in the United Kingdom, and a subsidiary that designs, manufactures and sells electronic security systems, primarily in the United States. It was not immediately clear whether the subsidiary was involved in the transaction.

CPP executives were meeting in Houston on Thursday and were not available for comment. In a statement, CPP President Thomas W. Wathen said the acquisition would increase CPP’s work force to 50,000 from 20,000.

“CPP will effectively integrate the two companies so service is not disrupted,” Wathen said in the statement.

Pinkerton’s, which began more than 100 years ago and became famous for its railroad detectives, has proved troublesome to American Brands over the last few years. Pinkerton’s profits declined in 1985 and again in 1986, as the security firm spent heavily to enter new markets.