Allegion to Acquire Stanley Black & Decker’s Access Technologies Business

Allegion plc, a global security products and solutions provider, has signed a definitive agreement to acquire Stanley Access Technologies LLC 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.”

Featured

  • Meeting Modern Demands

    Door hardware and access control continue to be at the forefront of innovation within the security industry, continuously evolving to meet the dynamic needs of commercial spaces. Read Now

  • Leveraging IoT and Open Platform VMS for a Connected Future

    The evolution of urban environments is being reshaped by the convergence of Internet of Things (IoT) technology and open platform VMS. As cities worldwide grapple with growing populations and increasing operational complexities, these integrated technologies are emerging as powerful tools for creating more livable, efficient, and secure urban spaces. Read Now

  • Securing the Future

    Two security experts sit down with Security Today’s editor in chief Ralph C. Jensen to discuss what they see emerging and changing over the next several years along with how security stakeholders can harness these innovations into opportunities. Read Now

  • Collaboration Made Easy Using a Work Management Platform

    Effective collaboration between security operators, teams and other departments is critical to the smooth functioning of organizations. Yet, as organizations grow in complexity, it becomes more difficult for teams to coordinate with each other. This is compounded by staffing shortages, turnover and ineffective collaboration tools. Read Now

  • Creating a Safer World

    Managing and supporting locks and door hardware within a facility is a big responsibility. A building’s security needs to change over time as occupancy and use demands evolve, which can make it even more challenging. Read Now

New Products

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

  • Unified VMS

    AxxonSoft introduces version 2.0 of the Axxon One VMS. The new release features integrations with various physical security systems, making Axxon One a unified VMS. Other enhancements include new AI video analytics and intelligent search functions, hardened cybersecurity, usability and performance improvements, and expanded cloud capabilities

  • HD2055 Modular Barricade

    Delta Scientific’s electric HD2055 modular shallow foundation barricade is tested to ASTM M50/P1 with negative penetration from the vehicle upon impact. With a shallow foundation of only 24 inches, the HD2055 can be installed without worrying about buried power lines and other below grade obstructions. The modular make-up of the barrier also allows you to cover wider roadways by adding additional modules to the system. The HD2055 boasts an Emergency Fast Operation of 1.5 seconds giving the guard ample time to deploy under a high threat situation.