Ingersoll Rands US2 Billion Security Products Spinoff: Allegion
by Security Electronics and Networks | @Articles News | June 17, 2013, 7:00am AEST
The spinoff company will include the well-known Schlage brand of locks and other electronic and biometric access-control products. Other brands in its portfolio include LCN, Von Duprin, Interflex, CISA, Briton, Bricard, BOCOM Systems, Dexter, Kryptonite, Falcon and Fusion Hardware Group. Ingersoll Rand announced the name in a filing with the U.S. Securities and Exchange Commission.
“We’re excited about the name,” Misty Zelent, a spokesperson for Ingersoll Rand, based here, told SSN recently. “It really represents the collaborative long-term relationships we have with customers and the team of experts we have around the world for this new company.”
Allegion will spin off before the end of this year, Ingersoll Rand said in a news release. Zelent said she had no further details on when the spinoff would occur, but that when it does take place, “Allegion will be a stand-alone public company separate from Ingersoll Rand.”
Allegion will employ about 7,600 people in 35 countries, including 20 production and distribution facilities around the world. Ingersoll Rand said the CEO of Allegion would be named later this year. In April, Ingersoll Rand announced that Patrick Shannon would serve as senior VP and CFO of the new security spinoff and Barbara Santoro would serve as SVP and general counsel.
Five directors will serve on Allegion’s board with the new CEO, according to the news release. The release said the directors are David B. Burritt, former VP and CFO of Caterpillar Inc., who will chair the Audit Committee; Michael J. Chesser, former chairman and CEO of Great Plains Energy Inc., who will be chairman of the Compensation Committee; Carla Cico, former CEO of Rivoli SPA and Ambrosetti Consulting; Kirk S. Hachigian, former chairman, president and CEO of Cooper Industries, who will be the board’s lead director or non-executive chairman; and Luc Oursel, chairman, president and CEO of Areva SA.
Reuters noted that “the spinoff removes some of the legacy company’s (IR) best high-margin businesses, which account for about 14 per cent of revenue.” It said the original Ingersoll Rand would focus primarily on commercial and residential heating, ventilation and air-conditioning systems manufacturing. The remaining IR business will total about $US12 billion.