Allegion to Acquire Lemaar, Expanding Security and Accessibility Portfolio in Australia

Rhea-AI Summary

Allegion plc (NYSE: ALLE) has signed a definitive agreement to acquire Lemaar Australia Pty , a Victoria-based door hardware company. The acquisition is expected to close in Q1 2025. Founded in 1999, Lemaar specializes in security and accessibility solutions, including door entry systems, handles, and digital locks for residential and multifamily markets.

The acquisition will strengthen Allegion's presence in Australia, with Lemaar reporting to the Allegion International segment. Lemaar's product lines and channels complement Allegion's portfolio, offering new opportunities for scaling. Lemaar's owner, Bill Spyrou, will serve in an advisory role to support the business transition. The financial terms of the transaction were not disclosed.

Positive

• Strategic expansion in Australian market through acquisition of established door hardware company
• Complementary product portfolio alignment enhancing market reach
• Additional distribution channels and market opportunities for scaling
• Retention of previous owner in advisory role ensuring smooth transition

Negative

• Undisclosed transaction value creates uncertainty for investors
• Extended closing timeline (Q1 2025) presents execution risk

Insights

M&A Strategy Analyst

This strategic acquisition marks a calculated move to strengthen Allegion's market position in Australia's $1.5+ billion door hardware and security solutions sector. Lemaar's expertise in digital locks and accessibility solutions particularly stands out, as these segments are experiencing rapid growth due to increasing smart home adoption and stricter building accessibility regulations.

The integration presents three key strategic advantages: First, Lemaar's established relationships with builders and retailers will accelerate Allegion's market penetration in Australia's residential and multifamily sectors. Second, the complementary product portfolio, especially in digital locks and accessibility solutions, positions Allegion to capitalize on the growing demand for smart security solutions in the region. Third, Lemaar's specialty in disability accommodations aligns with increasing regulatory requirements for accessible building design, opening up opportunities in the commercial and institutional sectors.

While the transaction value remains undisclosed, the acquisition's structure, including the retention of Lemaar's owner in an advisory capacity, suggests a well-planned integration strategy focused on preserving customer relationships and market knowledge. The deal's timing coincides with Australia's robust construction activity and increasing investment in security infrastructure, potentially accelerating Allegion's growth trajectory in the region.

The integration into the Allegion International segment indicates potential operational synergies in supply chain management and distribution networks. This could lead to improved market coverage and enhanced service capabilities for both residential and commercial customers across Australia.

DUBLIN--(BUSINESS WIRE)-- Allegion plc (NYSE: ALLE), a leading global security products and solutions provider, through one of its subsidiaries, has signed a definitive agreement to acquire Lemaar Australia Pty Ltd (Lemaar), a privately held door hardware company based in Victoria, Australia. This acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions.

Founded in 1999, Lemaar is well-known in Australia for its high-quality security and accessibility solutions, which include door entry systems, handles and digital locks for residential and multifamily markets. Lemaar products closely align to the Allegion portfolio. Its channels and go-to-market approach also complement Allegion, offering new opportunities for both companies to scale.

After the transaction closes, Lemaar will report into the Allegion International segment, led by Allegion Senior Vice President Tim Eckersley.

“Lemaar will enhance Allegion's existing business in Australia and our ability to deliver comprehensive security and accessibility solutions for our customers,” Eckersley said. “Just as important, Lemaar is known for quality, aligning with Allegion’s strong reputation in the industry and with our partners.”

Bill Spyrou, owner of Lemaar, will serve in an advisory capacity, supporting a smooth transition for the business as it joins Allegion.

“Lemaar product lines and customer experiences are a natural extension of Allegion,” Spyrou said. “Together, we can create new value for builders, retailers and DIYers alike, across style and design but also security, access and specialist disability accommodations.”

Terms of the transaction were not disclosed.

About Allegion

Allegion (NYSE: ALLE) is a global pioneer in seamless access, with leading brands like CISA^®, Interflex^®, LCN^®, Schlage^®, SimonsVoss^® and Von Duprin^®. Focusing on security around the door and adjacent areas, Allegion secures people and assets with a range of solutions for homes, businesses, schools and institutions. Allegion had $3.7 billion in revenue in 2023, and its security products are sold around the world. For more, visit www.allegion.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, the company’s ability to successfully integrate the acquisition, achieve anticipated strategic and financial benefits from the acquisition, and statements regarding the company's 2024 and future financial performance, the company’s business plans and strategy, the company’s growth strategy, the company’s capital allocation strategy, and the performance of the markets in which the company operates. These forward-looking statements generally are identified by the words “believe,” “aim,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements. Forward-looking statements may relate to such matters as projections of revenue, margins, expenses, tax rate and provisions, earnings, cash flows, benefit obligations, dividends, share purchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including those relating to any statements concerning expected development, performance or market share relating to our products and services; any statements regarding future economic conditions or our performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Undue reliance should not be placed on any forward-looking statements, as these statements are based on the company's currently available information and our current assumptions, expectations and projections about future events. They are subject to future events, risks and uncertainties - many of which are beyond the company’s control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Important factors and other risks that may affect the company's business or that could cause actual results to differ materially are included in filings the company makes with the Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and in its other SEC filings. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. The company undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213482537/en/

Media Contact:

Whitney Moorman – Director, Global Communications

317-810-3241

Whitney.Moorman@allegion.com

Analyst Contacts:

Jobi Coyle – Director, Investor Relations

317-810-3107

Jobi.Coyle@allegion.com

Josh Pokrzywinski – Vice President, Investor Relations

463-210-8595

Joshua.Pokrzywinski@allegion.com

Source: Allegion plc

FAQ

When will Allegion (ALLE) complete the acquisition of Lemaar?

The acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions.

What products does Lemaar bring to Allegion's portfolio?

Lemaar brings door entry systems, handles, and digital locks for residential and multifamily markets to Allegion's portfolio.

Which Allegion segment will Lemaar report to after the acquisition?

After the acquisition closes, Lemaar will report into the Allegion International segment, led by Senior Vice President Tim Eckersley.

How will the Lemaar acquisition impact Allegion's Australian market presence?

The acquisition will enhance Allegion's existing business in Australia and improve its ability to deliver comprehensive security and accessibility solutions for customers.

What role will Lemaar's current owner have post-acquisition?

Bill Spyrou, Lemaar's owner, will serve in an advisory capacity to support a smooth transition as the business joins Allegion.