Allegion to Acquire Australian Residential Door Hardware Leader Gainsborough, National Commercial Locksmith
May 13 2018 - 6:35PM
Business Wire
Allegion, plc (NYSE:ALLE), a leading global security products
and solutions provider, has agreed to acquire GWA Group Limited’s
Door and Access Systems Business through one of its subsidiaries.
The transaction is expected to close in the third quarter of
2018.
GWA’s Door and Access Systems Business includes renowned
Australian brands Gainsborough Hardware and API Locksmiths.
Gainsborough is the market-leading residential door hardware brand
in Australia, with a portfolio that includes the country’s top
entrance door lock. API Locksmiths is the commercial market leader
for keying, installation and access control services across the
country.
“This strategic acquisition bolsters Allegion’s presence in
Australia and significantly increases our scale in the Asia-Pacific
region as a whole,” said David D. Petratis, Allegion president,
chairman and CEO. “We’re enhancing our residential presence with
market-leading positions and longstanding customer relationships,
all while accelerating our development of electronic security
solutions. This is consistent with Allegion’s growth strategy in
the region – and highly complementary to our core business.”
The GWA Door and Access Systems Business generated sales of
approximately AUD 95 million for calendar year 2017. The business
will operate in Allegion’s Asia-Pacific region.
“The Door and Access Systems Business is strong, and we believe
Allegion can maximize its potential,” said Tim Salt, GWA managing
director. “Allegion’s global scale, innovative technologies and
supply chain capabilities will enable both Gainsborough and API to
further enhance their offerings to customers.”
The transaction is valued at AUD 107 million. Allegion plans to
fund the acquisition through existing cash on hand and borrowings
under its revolving credit facility. Excluding merger and
acquisitions costs, Allegion expects the transaction to be slightly
accretive to adjusted EPS for 2018.
Greenhill & Co., LLC acted as financial advisor, and Jones
Day acted as legal advisor to Allegion with the transaction.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements that relate to the
acquisition’s impact on the company’s financial and operational
performance, the acquisition’s ability to drive growth and the
integration of the acquisition. These forward-looking statements
are based on the company's current available information and its
current assumptions, expectations and projections about future
events. They are subject to future events, risks and uncertainties
- many of which are beyond the company’s control - as well as
potentially inaccurate assumptions, which could cause actual
results to differ materially from those in the forward-looking
statements. Further information on these factors and other risks
that may affect the company's business are included in filings it
makes with the Securities and Exchange Commission from time to
time, including its Form 10-K for the year ended Dec. 31, 2017, and
Form 10-Q for the quarter ended March 31, 2018, and in its other
SEC filings. The company assumes no obligations to update these
forward-looking statements.
About Allegion™
Allegion (NYSE: ALLE) is a global pioneer in safety and
security, with leading brands like CISA®, Interflex®, LCN®,
Schlage®, SimonsVoss® and Von Duprin®. Focusing on security
around the door and adjacent areas, Allegion produces a range of
solutions for homes, businesses, schools and other institutions.
Allegion is a $2.4 billion company, with products sold in almost
130 countries. For more, visit www.allegion.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180513005074/en/
Allegion plcMedia:Maria Pia Tamburri,
317-810-3399Director, Public
AffairsMaria.Tamburri@allegion.comorAnalysts:Mike Wagnes,
317-810-3494Vice President, Treasurer and Investor
RelationsMichael.Wagnes@allegion.com
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