Stanley Sells Most of Its Lock Businesses to dormakaba
Stanley says it will keep its commercial electronic security and automatic doors businesses.
The lock businesses, which include the BEST Access, phi Precision and GMT brands of commercial door locks and door hardware, is a better fit in dormakaba's portfolio, Stanley CEO James Loree said in a statement last week.
Stanley Black & Decker has entered into a definitive agreement to sell the majority of its mechanical security businesses to dormakaba for $725 million in cash. The sale includes the commercial hardware brands of BEST Access, phi Precision and GMT, which together represented last 12 months (LTM) revenues and EBITDA of approximately $270 million and $52 million, respectively.
The remaining part of the mechanical security businesses, Sargent and Greenleaf, was not included in the sale. Stanley also announced that it intends to retain for the long-term its commercial electronic security and automatic doors businesses.
With this transaction and the company’s decision to retain its electronic security and automatic doors businesses, Stanley has concluded its previously announced security portfolio assessment, according to a news release.
“After an extensive evaluation of our security business, we are sharpening our focus on areas within our portfolio which are strategically attractive. While BEST Access, phi Precision and GMT are healthy and profitable businesses, they are a better fit in dormakaba’s portfolio and their divestiture will allow us to deploy capital in a more accretive and growth oriented manner,” says Stanley President and CEO James Loree.
“The commercial electronic security business, with its inherent linkage to the digital world provides both a stable recurring revenue stream and an opportunity to develop and market high value, high growth customer solutions incorporating IoT, cloud, advanced analytics and other emerging technologies,” Loree says. “Our scale and global footprint in this business is an excellent platform to build upon, both organically and inorganically. Our automatic doors business also represents an attractive growth opportunity for market expansion through both core and breakthrough innovation. We remain focused on applying the principles of our proven operating system, SFS 2.0, to enhance the growth, profitability and asset efficiency of these businesses.”
The transaction is expected to close in the first quarter of 2017, subject to customary closing conditions, including required regulatory approvals.
This article originally ran in Security Sales & Integration.
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