Allegion expands with Trimco Hardware acquisition

DUBLIN - Allegion plc (NYSE: ALLE), a global provider of security products and solutions, announced the acquisition of Trimco Hardware, a North American manufacturer known for its high-performance door hardware. Trimco, headquartered in Oceanside, California, specializes in products for commercial and institutional markets, including a line designed for healthcare, education, and restaurant environments. With a market capitalization of $11.3 billion and a strong financial health rating according to InvestingPro data, Allegion maintains healthy liquidity with current assets exceeding short-term obligations.

The acquisition, which includes Trimco’s brands and assets, is expected to enhance Allegion’s portfolio in the Americas. Trimco’s history spans 75 years, with a focus on architectural pulls, sliding door hardware, and mechanical locks.

Dave Ilardi, Allegion Senior Vice President, expressed that the integration of Trimco will offer "increased opportunities to solve complex security and access problems," aiming to deliver added value to customers. Jason Bennett, the owner of Trimco, will join Allegion as the general manager of Trimco, ensuring a smooth transition and promoting growth for the new combined entity.

Allegion, with notable brands such as CISA®, Interflex®, LCN®, Schlage®, SimonsVoss®, and Von Duprin®, reported $3.8 billion in revenue in 2024. The company is recognized for its comprehensive portfolio that includes locks, door closers, exit devices, steel doors and frames, as well as access control and workforce productivity systems.

Financial details of the transaction have not been disclosed. This expansion is part of Allegion’s strategy to consolidate its position in the market and leverage its global reach to offer a broader range of products and services. Based on InvestingPro analysis, Allegion operates with moderate debt levels and maintains strong profitability metrics. The information regarding the acquisition is based on a press release statement from Allegion plc. For detailed financial analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Allegion reported its fourth-quarter 2024 earnings, revealing an adjusted earnings per share (EPS) of $1.86, surpassing the forecast of $1.75. The company’s revenue for the quarter reached $945.6 million, slightly above the expected $938.17 million, marking a 5.4% year-over-year increase. Despite these positive results, Mizuho Securities adjusted its outlook on Allegion, lowering the stock’s price target from $150.00 to $145.00 while maintaining a Neutral rating. Mizuho’s decision was influenced by anticipated price drag due to rebate accruals, although they expect improvements in price/cost/productivity by 2025.

Allegion’s performance was bolstered by successful product innovations and strategic acquisitions, which contributed to its market position. The company completed five acquisitions in 2024 and launched several innovative products. For 2025, Allegion projects revenue growth between 1% and 3%, with expected EPS ranging from $7.65 to $7.85. The company anticipates low to mid-single-digit growth in the Americas, while international revenue is expected to remain relatively flat.

Allegion is also managing potential tariff impacts, particularly from Mexico, which could affect 20-25% of the cost of goods sold. The company plans to counterbalance this with pricing actions. Analysts have noted that Allegion’s growth in electronic locks is expected to outpace mechanical locks, with high single-digit growth projected for 2025.

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