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.
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.