Stanley Black & Decker sells its automatic doors business
Stanley Black & Decker has signed a definitive agreement for the sale of its automatic doors business, Access Technologies, to global security firm Allegion for $900 million in cash.
“The sale of Access Technologies at an attractive valuation, demonstrates our commitment to maximizing value for our shareholders through active portfolio management and will help fund our substantial return of capital,” said James M. Loree, CEO of Stanley Black & Decker.
“With a more focused portfolio – comprised of our Tools & Outdoor and Industrial segments – Stanley Black & Decker is positioned to capitalize on compelling opportunities for multi-year growth, margin expansion and long-term value creation for shareholders,” said the CEO.
Access Technologies patented the first hands-free door operator in 1931 and grew to become an industry leader providing state-of-the-art and fully integrated automatic door solutions, said the company.
Net proceeds from the sale are expected to be used to fund Stanley Black & Decker’s previously announced share repurchase program as well as debt reduction.
The company’s overall capital allocation strategy reflects its commitment to generating substantial capital returns, maintaining strong investment grade credit ratings and pursuing opportunistic value-creating M&A.
Access Technologies was the remaining piece of Stanley Black & Decker’s Security segment following the definitive agreement entered into in December 2021 to sell its commercial electronic and healthcare security business lines to Securitas.
The Access Technologies business generated approximately $340 million in revenue in 2021 at a mid-teen adjusted EBITDA margin.
“On behalf of the entire Stanley Black & Decker organization, I want to thank our Access Technologies team members for their valuable contributions over the years,” said Loree.
“Allegion is a leader in the industry, and I am confident the organization and the business are positioned for a great future of growth and success under their ownership,” said Loree.
Founded in 1908, Allegion, headquartered in Ireland, is an American Irish-domiciled provider of security products for homes and businesses comprised of 31 global brands, including CISA, Interflex, LCN, Schlage and Von Duprin.
New Britain, Connecticut, Stanley Black & Decker is the world's largest tool company operating nearly 50 manufacturing facilities across America and more than 100 worldwide. Guided by its purpose – for those who make the world.