Allegion signs an agreement to acquire Stanley Access Technologies

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Allegion plc, a global security products, and solutions provider has signed a definitive agreement to acquire Stanley Access Technologies LLC (‘Access Technologies’) and assets related to the automatic entrance solutions business from Stanley Black & Decker, Inc. for $900 million in cash.

When adjusted for approximately $90 million in tax benefits, the purchase price is $810 million on a cash-free, debt-free basis. Reducing the amount paid by the tax benefits, the purchase price represents approximately 14.5x 2022E EBITDA, or approximately 12.5x including run-rate synergies.

Access Technologies is a manufacturer, installer, and service provider of automatic doors in North America, primarily in the United States and Canada. Its diversified customer base centers on non-residential settings, including retail, healthcare, education, commercial offices, hospitality, and government. Access Technologies generated approximately $340 million in net sales in 2021.

As a result of this acquisition, Allegion will significantly expand its breadth of access, egress, and access control solutions. In addition, Allegion will have exposure to high-growth segments across a large installed base, as well as the scale and coverage to better serve its commercial and institutional customers with automatic entrance solutions and access technologies.

“We are excited to add the Access Technologies business to our portfolio of solutions,” said David D. Petratis, Allegion Chairman, President, and CEO. “With this acquisition, we will expand in an adjacent market segment, ultimately providing customers and end-users with a more comprehensive offering for seamless access wherever they reside, work and thrive.”

“Combining Access Technologies’ high-quality products and services with our ability to deliver value through access will significantly expand our core business and accelerate growth. Access Technologies shares a strong track record of innovation and is a market leader in its category. We look forward to welcoming the team to the Allegion family and unlocking greater value for our customers and our shareholders.”