Just months after divesting its security integration arm in a deal with Securitas valued at more than $3 billion, Stanley Black & Decker announced on Friday that it is selling its Access Technologies business to Allegion for $900 million.
The deal has been unanimously approved by Allegion’s board and is expected to close in the third quarter of 2022, subject to regulatory approval and customary closing conditions.
Access Technologies, which manufacturers, installs and services automatic doors throughout a variety of commercial vertical markets in North America, generated approximately $340 million in net sales last year. Allegion said it expects to operate the business as part the Allegion Americas segment upon the deal’s closing.
In addition to expanding its breadth of access control solutions, Allegion said the acquisition would provide them with greater exposure to high-growth segments across a large installed base while also giving the company the scale and coverage to better serve existing 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,” Allegion Chairman, President and CEO David Petratis said in a statement. “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.”
“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,” added Access Technologies President and General Manager Brian Pertman. “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.”
For its part, Stanley Black & Decker said the deal would enable the company to focus more on their core businesses and product portfolio. Proceeds from the sale will be used to fund the company’s previously announced share repurchase program as well as for debt reduction.
"The sale of Access Technologies at an attractive valuation demonstrates our commitment to maximizing value for our shareholders through active portfolio management and will help fund our substantial return of capital. With a more focused portfolio – comprised of our Tools & Outdoor and Industrial segments – Stanley Black & Decker is positioned to capitalize on compelling opportunities for multi-year growth, margin expansion and long-term value creation for shareholders,” said Stanley Black & Decker CEO James Loree.
