SAN ANTONIO — Argyle Security Inc. promoted Sam Youngblood to chief executive officer as the Texas-based security electronics contractor announced several changes to its executive management team.
Youngblood, who has more than 30 years of experience in the corrections industry and founded detention equipment contractor ISI Detention, a subsidiary of Argyle, will continue to serve as company president.
Argyle also hired Richard Watts as chief financial officer. Watts previously served as corporate controller for GSE Lining Technology and has more than 18 years of experience in financial reporting with an emphasis on project accounting.
Youngblood replaces Bob Marbut, who resigned as CEO and company director.
“Given the board’s vision for the company, this is the right move at this time,” Marbut says.
As part of the management shakeup, the board of Argyle also accepted the resignations of Ron Chaimovski, executive chairman; Don Neville, executive vice president and CFO; and Dean Dresser, vice president, controller and principal accounting officer. Chaimovski also resigned as a director of Argyle and its subsidiaries.
In addition to ISI Detention, Argyle’s corrections group holds controlling interests in security electronics and communications manufacturer Com-Tec Security, security electronics contractor MCS Detention, and detention equipment contractor Peterson Detention Inc.
Argyle recently secured $10.45 million in financing from the company’s largest shareholder as part of a refinancing move. The investment from funds managed by MML Capital Partners consists of $8 million in convertible subordinated bridge notes and $2.45 million in convertible subordinated promissory notes.
The refinancing will enable Argyle to strengthen its position in the corrections, Youngblood says.
The refinancing initiative, which amended Argyle’s senior and subordinated debt facilities financial covenants and deferred certain amortization payments, decreased total interest costs, according to the company.
“Despite the significant slowdowns in many sectors of the economy, the corrections and commercial security markets remain particularly strong,” Youngblood says.