NEW YORK, NY – March 2, 2017 – Welsh, Carson, Anderson & Stowe (“WCAS”), a private equity firm focused exclusively on the technology and healthcare industries, today announced a strategic investment in Consumer Safety Technology, LLC, (“CST” or “the Company”), a leading U.S. provider of ignition interlock devices (“IIDs”), which are breathalyzers installed in vehicles to prevent ignition by intoxicated drivers.
CST pioneered the development of fuel cell technology in IIDs, and continues to combat drunk-driving with the most innovative solutions in the market. Today, the Company serves legally-mandated and elective IID and home monitoring customers in 48 states through a network of over 1,900 service centers. Since 2010, the ignition interlock industry has more than doubled and is expected to continue on this trend as widely supported, stronger drunk-driving legislation supports increased adoption across the U.S.
“After a highly successful and mutually beneficial five-year relationship with ClearLight Partners, Consumer Safety Technology looks forward to continuing our rapid growth in partnership with Welsh, Carson, Anderson & Stowe,” said Kimberly D. Williams, CEO of CST. “WCAS shares our deep commitment to public safety and consumer wellness.”
“Under the strong leadership of its management team, CST has grown into a national platform through its focus on service, reliability and technology,” said Michael Donovan, a WCAS General Partner. “We look forward to a new phase of growth in partnership with management, focused on
customer service and innovative development of products that have a clear and compelling benefit to society.”
The transaction has satisfied all regulatory requirements and customary closing conditions.
SunTrust Robinson Humphrey Inc. acted as exclusive financial advisor to Consumer Safety Technology.
Headquartered in Des Moines, Iowa, Consumer Safety Technology developed its state-of-the-art ignition interlock device in conjunction with researchers from Iowa State University. Recently celebrating its 23rd anniversary in the alcohol monitoring business, CST currently serves clients who are legally required to install an ignition interlock device or home alcohol-monitoring unit, in addition to voluntary users, in 48 states across the nation. Consumer Safety Technology is backed by Welsh, Carson, Anderson & Stowe.
WCAS focuses its investment activity in two target industries: technology and healthcare. Since its founding in 1979, WCAS has organized 16 limited partnerships with total capital of over $22 billion. WCAS has a current portfolio of approximately twenty-five companies. WCAS’s strategy is to partner with outstanding management teams and build value for its investors through a combination of operational improvements, internal growth initiatives and strategic acquisitions. The firm is currently investing an equity fund, Welsh, Carson, Anderson and Stowe XII, L.P., which closed on over $3.3 billion in commitments. See www.wcas.com to learn more.