Allegion US Holding Company Inc. acquired Stanley Access Technologies LLC and Automatic Entrance Solutions Assets from Stanley Black & Decker for $900 million.
July 04, 2022
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Allegion US Holding Company Inc. entered into a definitive agreement to acquire Stanley Access Technologies LLC and Automatic Entrance Solutions Assets from Stanley Black & Decker for $900 million on April 22, 2022. The $900 million purchase price is on a cash-free, debt-free basis and Implies 2022E EBITDA multiple of 16x. Access Technologies generated approximately $340 million in net sales in 2021. Following the close of the acquisition, Allegion expects to operate the Access Technologies business as part of the Allegion Americas segment. Allegion intends to finance the transaction through a combination of cash, borrowings under its existing revolving credit facility and new debt financing. Allegion has obtained fully committed financing from Goldman Sachs & Co. LLC. The acquisition has been unanimously approved by AllegionÆs Board of Directors. The acquisition is subject to regulatory approval and customary closing conditions. Any waiting period under the HSR Act applicable to the Transactions shall have expired or shall have been terminated for completion. The transaction is not subject to a financing condition. The acquisition expected to close in the third quarter of 2022.
The Goldman Sachs Group, Inc. (NYSE:GS) acted as financial advisor to Allegion. Lori Zyskowski and Andrew Kaplan of Gibson, Dunn & Crutcher LLP acted as legal advisor to Stanley Black & Decker, Inc. Michael P. Considine, P.C. and Courtney Roane of Kirkland & Ellis LLP acted as legal advisor to Allegion US Holding Company Inc.Centerview Partners has acted as a financial advisor to Stanley Black & Decker
Allegion US Holding Company Inc. completed the acquisition of Stanley Access Technologies LLC and Automatic Entrance Solutions Assets from Stanley Black & Decker on July 5, 2022. The Company funded the aggregate purchase price through the issuance of proceeds from its $600 million aggregate principal amount of its 5.411% Senior Notes due 2032 together with cash on hand and additional borrowings under its revolving credit facility. Stikeman Elliott LLP acted as Canadian counsel to Allegion PLC in the deal.
Stanley Black & Decker, Inc. specializes in the design, manufacturing and marketing of tools and engineering solutions for professional, industrial and construction and consumer use. Net sales break down by family of products as follows:
- electric tools and accessories (71.1%): tools and electric devices (drills wire, sanders, saws, grinders, batteries, etc.), garden tools (shears, cutting edge, trimmers, aerators , grinders, chainsaws, etc.), vacuum cleaners, lamps, lights, battery chargers, starter batteries, power converters, hand tools (measuring and leveling tools, planes, hammers, knives, blades, screwdrivers, saws, etc.), consumer mechanics tools (wrenches and sockets), plastic tool boxes, pneumatic tools and fasteners (nail guns, staplers, staples, etc.);
- industrial products (16.2%): professional and automotive mechanics tools (wrenches, sockets, electronic diagnostic tools, etc.), storage systems, plumbing, heating and air conditioning tools (pipe wrenches, pliers, tubing cutters, etc.), hydraulic tools, etc.;
- access and security products (12.7%): automatic doors, door closers, emergency exit devices, locking mechanisms, integrated security devices, etc.
Net sales are distributed geographically as follows: the United States (60.5%), Canada (4.7%), Americas (4.2%), France (4%), Europe (19.2%) and Asia (7.4%).
Allegion US Holding Company Inc. acquired Stanley Access Technologies LLC and Automatic Entrance Solutions Assets from Stanley Black & Decker for $900 million.
STANLEY BLACK & DECKER, INC. 
