HERNDON, Va., March 19, 2014 (GLOBE NEWSWIRE) — Command Security Corporation (NYSE:MOC) announced today that it has acquired a minority interest in Ocean Protection Services Ltd (OPS), a UK based company specializing in armed maritime security, risk management and risk analysis. Command also announced today that the Company has been notified that the Western Region security services contract with a major transportation company will not be renewed beyond May 31, 2014.
On March 14, 2014, Command Security Corporation invested $2.125 million for a 20% ownership interest in a limited liability company that recently acquired OPS. As part of the agreement to purchase this 20% ownership interest, the Company may acquire additional ownership interest.
For the year ended December 31, 2013, OPS reported unaudited revenues of $18.4 million. The Company expects to account for its investment using the equity method of accounting for investments.
Chief Executive Officer Craig P. Coy said, “This is a significant step in our strategic plan to expand Command Security’s capabilities and customer base with higher value-added services. We look forward to working closely with Ocean Protection Services to assist in their continuing growth into new markets.”
As previously announced, security services contracts with a major transportation company were originally scheduled to expire on May 31, 2013. Since that time both the Eastern and Western Region contracts were extended four times, most recently through May 31, 2014. As the Company announced on February 21, 2014, the Company was awarded a five-year follow-on contract for the Eastern Region and was awaiting an award announcement regarding the Western Region. The Company has been notified that it will not be awarded the follow-on contract for the Western Region of this major transportation company. Total revenues related to the Western Region contract for the year ended March 31, 2013, and for the nine months ended December 31, 2013, represented approximately 12.8% and 12.9% of total Company revenues, respectively.
To read the entire press release, please click here.