Divesting Randi-Denmark to Acquire Minority Stake in Leading
German Door Function Manufacturer Underscores Allegion's Dedication to
Growth
DUBLIN, Ireland--(BUSINESS WIRE)--
Allegion plc (NYSE: ALLE), a leading global provider of security
products and solutions, today announced it has signed a definitive
agreement to sell its Denmark-based producer of door levers, Randi, to
Eco Schulte GmbH, a family-owned German producer of trim and lock
products. In return, Allegion will receive a minority stake in Eco
Schulte, forging a mutually beneficial partnership between Allegion and
Eco Schulte. The transaction is expected to close early in the second
quarter of 2014, with completion subject to German merger control
clearance.
The deal furthers Allegion's global growth strategy, strengthening its
presence in the German market, while providing Eco Schulte the benefits
of a multi-national partner. Eco Schulte is a third generation
family-owned manufacturer of high-quality door function systems
including levers, mechanical exits, closers and locks. It sells its
products through door manufacturers, construction wholesalers, and
partners.
"Through this partnership, Allegion is focusing its portfolio to better
serve our customers while creating business alignment," said Dave
Petratis, chairman, president and CEO of Allegion. "In exchange for
Randi-Denmark, we are gaining a valued partner in a growing market that
will support our strategy to improve our European business, while
providing Eco Schulte access to a broader product portfolio."
"We are excited about the new strategic partnership with Allegion plc
and are sure that both companies complement each other very well on the
product as well as on the production level," said Tobias Schulte,
Managing Director of Eco Schulte. "We are now on the path to become a
consistent system provider in the region and set to continue providing
our customers added value with the diverse portfolios of both companies."
The transaction includes a set of commercial agreements related to
product sales, product supply, and potentially joint product
development. Eco Schulte will be named as a dealer of a large portion of
the Allegion EMEIA portfolio in Scandinavia. Conversely, Allegion will
have continued rights to the Randi product line for sale throughout
Europe. Allegion will also receive a seat on Eco Schulte's Advisory
Board. Randi products will continue to be sold and available in their
current markets.
Allegion has previously emphasized its commitment to enhancing
shareholder value and growing in emerging markets that expand
distribution, enhance its product portfolio and provide new
technologies. This deal follows Allegion's recent acquisition of certain
assets of Schlage Lock de Colombia S.A., the second largest mechanical
lock manufacturer in that country with revenues of approximately US$12
million.
This news release includes "forward-looking statements," which are
statements that are not historical facts, including statements that
relate to our business and growth strategy, and our Europe, Middle East,
India and Africa (EMEIA) strategy. These forward-looking statements are
based on our current expectations and are subject to risks and
uncertainties, which may cause actual results to differ materially from
our current expectations. Such factors include, but are not limited to,
our ability to fully realize the expected benefits of the spinoff;
global economic conditions, demand for our products and services and tax
law changes. Additional factors that could cause such differences can be
found in our Form 10. We assume no obligation to update these
forward-looking statements.
About Allegion
Allegion (NYSE: ALLE) creates peace of mind by pioneering safety and
security. As a $2 billion provider of security solutions for homes and
businesses, Allegion employs more than 7,800 people and sells products
in more than 120 countries across the world. Allegion comprises 23
global brands, including strategic brands CISA®, Interflex®, LCN®,
Schlage® and Von Duprin®.
For more, visit www.allegion.com.
Allegion plc
Media:
Susana Duarte de Suarez,
317-810-3393
[email protected]
or
Analysts:
Tom
Martineau, 317-810-3759
[email protected]
Source: Allegion plc
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