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DUBLIN - Allegion plc (NYSE: NYSE:ALLE), a prominent player in the security products and solutions sector with a market capitalization of $11.54 billion and an "GOOD" Financial Health score according to InvestingPro, has announced its subsidiary's definitive agreement to acquire Lemaar Australia Pty Ltd, a door hardware company based in Victoria, Australia. The transaction is expected to be finalized in the first quarter of 2025, contingent upon customary closing conditions. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with multiple positive indicators available to subscribers.
Established in 1999, Lemaar is recognized in the Australian market for its door entry systems, handles, and digital locks designed for residential and multifamily applications. The company's offerings are a strategic fit with Allegion's portfolio, potentially providing new scaling opportunities through complementary channels and market approaches.
Post-acquisition, Lemaar will be integrated into Allegion's International segment. Allegion Senior Vice President Tim Eckersley commented on the acquisition, highlighting Lemaar's reputation for quality and its alignment with Allegion's strong industry standing. He anticipates that the acquisition will bolster Allegion's business in Australia, enhancing the delivery of comprehensive security and accessibility solutions.
Bill Spyrou, the current owner of Lemaar, will assist in an advisory role during the transition phase. Spyrou expressed confidence that the merger would create added value for various stakeholders, including builders, retailers, and DIY enthusiasts, by combining style and design with security, access, and specialist disability accommodations.
While the financial terms of the deal have not been disclosed, this move is part of Allegion's broader strategy to expand its global footprint in the seamless access industry. Allegion, which reported $3.7 billion in revenue in 2023 and maintains a healthy 44% gross profit margin, is known for its brands like CISA®, Interflex®, LCN®, Schlage®, SimonsVoss®, and Von Duprin®. The company has demonstrated strong financial management, having raised its dividend for 11 consecutive years. For detailed analysis and comprehensive metrics, investors can access the full InvestingPro Research Report, which provides deep-dive analysis of Allegion's financial health, valuation, and growth prospects among 1,400+ top stocks covered. The company's security products are distributed worldwide.
This press release contains forward-looking statements that involve risks and uncertainties. These statements are based on the company's current assumptions and projections about future events. Factors that could cause actual results to differ are detailed in the company's SEC filings. The information in this article is based on a press release statement from Allegion plc.
In other recent news, Allegion, a key player in the security products sector, has announced a 6% increase in its quarterly dividend for the 11th consecutive year. This decision comes after the company reported a revenue of $3.7 billion in 2023. In another development, Allegion has expanded its business with the acquisition of Next (LON:NXT) Door Company, a manufacturer of custom stainless steel and hollow metal doors, aiming to broaden its product offerings and strengthen its market position.
However, according to Morgan Stanley (NYSE:MS), Allegion may face challenges in the future due to its positioning in the industrial market. The firm initiated coverage on Allegion shares with an Equalweight rating, indicating that the company's current valuation reflects these potential difficulties.
Additionally, Allegion has expanded its board with the appointment of Gregg Sengstack, executive chairperson of Franklin Electric (NASDAQ:FELE) Company, Inc. Sengstack's extensive experience in international markets and financial management will be an asset to the company. These are some of the recent developments surrounding Allegion.
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