Allegion Strikes Deal for Netherlands Security Provider AXA Stenman
The $203 million acquisition will expand Allegion’s presence in the Europe, Middle East, India & Africa region.
DUBLIN, Ire. – Allegion (NYSE: ALLE), a global security products and solutions provider, has agreed through one of its subsidiaries to acquire AXA Stenman Holding. The transaction, valued at more than $203 million, is expected to close in the third quarter of this year, subject to regulatory approvals.
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Founded in 1902, AXA is a leading European-based residential and portable security provider headquartered in Veenendaal, the Netherlands, with production facilities in the Netherlands, France and Poland. AXA manufactures and sells a branded portfolio of bicycle locks and lights, as well as a wide variety of window and door hardware. The products are sold throughout Europe to OEMs, retail distributors and property builders. AXA has approximately 320 employees, generated sales of approximately $66 million in 2014 and is expected to generate double-digit revenue growth in 2015.
Allegion Chairman, President and CEO David Petratis says AXA’s products are highly regarded for their quality and security ratings. He also noted that AXA has an entrepreneurial culture with a robust management team that’s built extensive customer and channel relationships Allegion can further leverage.
“AXA is a strong brand that has a reputation for premium quality security solutions, making this company a great fit for our EMEIA [Europe, Middle East, India & Africa] business and also for Allegion as a whole,” Petratis says. “With AXA in our family, we will enhance our company’s deep local heritage and create more meaningful growth opportunities through innovative product development in Europe and globally. AXA’s portable security portfolio strengthens our Kryptonite brand, and AXA’s residential product leadership in the Netherlands adds to our strong portfolio of local European brands, including CISA, Bricard and Briton.”
Following the closing of the transaction, AXA is expected to operate within the EMEIA region of Allegion. Harry Smeets, CEO of AXA, believes both companies will benefit from the new partnership.
“Our product and market strength, coupled with Allegion’s global and portable security footprint, will enable us to enhance our collective offerings to customers,” Smeets says. “Furthermore, leveraging our combined product development capabilities will allow us to accelerate our innovation pipelines. This is an exciting time for both companies.”
Allegion plans to fund the acquisition through existing cash on hand and its revolving credit facility. The transaction is expected to be accretive to Allegion’s EBITDA margin and accretive to earnings by 2016. Excluding transaction and integration costs, the deal is expected to be immediately accretive to earnings.
Delphi Advisors acted as financial advisor, and Houthoff Buruma acted as legal advisor to Allegion with the transaction. William Blair & Company acted as financial advisor, and Loyens & Loeff acted as legal advisor to Gilde Buy Out Partners and the other selling shareholders with the transaction.
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