Sensormatic Gets Kmart Order for Tags

Sensormatic Electronics Corp. agreed to supply Troy, Mich.-based Kmart Corp. with anti-theft tagging devices in an accord that will double Sensormatic’s business with the retailer. The Boca Raton, Fla.-based company will supply 1,019 Kmart stores with the company’s UltraMax electronic surveillance systems. In return, Kmart, the nation’s third-largest retailer, will purchase labels and tags used with the system. A Sensormatic spokeswoman said the value of the agreement will be determined by the number of tags and labels Kmart orders. Harry Katica, an analyst at Raymond James & Associates in St. Petersburg, Fla., said the new contract is worth roughly $5 million a year, or $25 million over the five-year period. The Kmart contract was hotly contested between Sensormatic and Thorofare, N.J.-based Checkpoint Systems Inc.