Allegion to Acquire Australian Residential Door Hardware Leader Gainsborough, National Commercial Locksmith
Allegion, plc has agreed to acquire GWA Group Limited’s Door and Access Systems Business through one of its subsidiaries. The transaction is expected to close in the third quarter of 2018.
GWA’s Door and Access Systems Business includes renowned Australian brands Gainsborough Hardware and API Locksmiths. Gainsborough is the market-leading residential door hardware brand in Australia, with a portfolio that includes the country’s top entrance door lock. API Locksmiths is the commercial market leader for keying, installation and access control services across the country.
“This strategic acquisition bolsters Allegion’s presence in Australia and significantly increases our scale in the Asia-Pacific region as a whole,” said David D. Petratis, Allegion president, chairman and CEO. “We’re enhancing our residential presence with market-leading positions and longstanding customer relationships, all while accelerating our development of electronic security solutions. This is consistent with Allegion’s growth strategy in the region – and highly complementary to our core business.”
The GWA Door and Access Systems Business generated sales of approximately AUD 95 million for calendar year 2017. The business will operate in Allegion’s Asia-Pacific region.
“The Door and Access Systems Business is strong, and we believe Allegion can maximize its potential,” said Tim Salt, GWA managing director. “Allegion’s global scale, innovative technologies and supply chain capabilities will enable both Gainsborough and API to further enhance their offerings to customers.”
The transaction is valued at AUD 107 million. Allegion plans to fund the acquisition through existing cash on hand and borrowings under its revolving credit facility. Excluding merger and acquisitions costs, Allegion expects the transaction to be slightly accretive to adjusted EPS for 2018.
Greenhill & Co., LLC acted as financial advisor, and Jones Day acted as legal advisor to Allegion with the transaction.