Stanley Black & Decker sell business to Allegion

by | Apr 28, 2022

Stanley Black & Decker announced it has signed a definitive agreement for the sale of its automatic doors business, Access Technologies, to Allegion for $900 million in cash.  

The Access Technologies business generated approximately $340 million in revenue in 2021 at a mid-teen adjusted EBITDA margin.

Stanley Black & Decker’s Chief Executive Officer James Loree said, “the sale of Access Technologies at an attractive valuation demonstrates our commitment to maximising value for our shareholders through active portfolio management and will help fund our substantial return of capital. “

“With a more focused portfolio – comprised of our tools & outdoor and industrial segments – Stanley Black & Decker is positioned to capitalise on compelling opportunities for multi-year growth, margin expansion and long-term value creation for shareholders.”

“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.  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,” Mr Loree said.

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. Access Technologies was also 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.

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.

The transaction is subject to regulatory approval and other customary closing conditions.  The company expects to record Access Technologies as discontinued operations when it reports first quarter results on April 28, 2022.