Allegion to Acquire Stanley Black & Decker’s Access Technologies Business
Allegion, a leading 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 leading 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.”
“Allegion has a proven record of investing in its core business and driving innovation, which will offer significant benefits for our business, employees and customers,” said Brian Pertman, Access Technologies President, General Manager. “As a global industry leader in access technology and security, Allegion will provide our business with incredibly strong new end user, architectural and specification relationships and distribution networks, as well as additional resources to take our business to the next level. We know Allegion well and believe our shared culture of providing quality solutions to customers will accelerate our business into the future.”
Compelling Strategic and Financial Benefits
- Creates a more comprehensive portfolio of access solutions with the addition of automated entrances: The acquisition bolsters Allegion’s seamless access strategy with a highly complementary category market leader. Access Technologies is an end-to-end automatic entrance solutions provider, with a history of driving revenue growth and capturing market share through innovative product solutions and strong service excellence. Its high-quality portfolio will enable Allegion to expand its addressable market, while Allegion’s strength in specifications and institutional markets can fuel further growth for the automatic entrance solutions category. Allegion’s digital strategy and expertise in mobile applications and software will increase Access Technologies’ connected capabilities, also allowing Allegion to further capitalize on the industry shift toward smart security solutions in a new category.
- Adds installation and maintenance services: Access Technologies has an expansive service and support network in North America, which is a value driver for its category. The acquisition builds on Allegion’s earlier investments in accelerating delivery and efficiency through an expanded service center footprint and broader distribution capabilities.
- Broadens solutions for attractive end markets: Access Technologies serves a breadth of national, regional and local customers of all sizes in a variety of verticals, which are complementary to Allegion’s strengths in the Americas non-residential markets. It will also provide greater access for Allegion in areas of strength for the Access Technologies business.
- Expands revenue through services, with a significant customer base: The acquisition adds services that provide ongoing and consistent revenue streams. The services business is an important driver of the customer value proposition and a driver of aftermarket revenue. The companies expect this acquisition to also grow Access Technologies’ services business as it capitalizes on Allegion’s broader footprint in the Americas region and as the business unit captures cross-selling opportunities within Allegion’s customer base.
This acquisition progresses Allegion’s strategy to create value “by securing people and assets with seamless access wherever they reside, work and thrive.”