Allegion to Acquire Australian Access Business Gainsborough, API Locksmiths For $A107 Million
David D. Petratis, Allegion
ALLEGION will acquire GWA Group Limited’s Door and Access Systems Business, which 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 $A95 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 $A107 million and 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.