Allegion, which recently announced to acquire SimonsVoss, sees the deal as an opportunity for the company to grow and provide more comprehensive solutions.
In an interview, Patrick Shannon, CFO of Allegion, said that opportunistic acquisitions are a strategic pillar for Allegion and have been since the time of its spinoff from Ingersoll Rand in December 2013.
“We want to take advantage of a consolidating industry, and we continuously examine many opportunities as part of our overall corporate strategy,” he said.
“SimonsVoss has always been looked at as a strategic asset, given its leadership position in Europe for electro-mechanical locks. Since the time of the spinoff, we have made investments or acquired companies in Australia, the United States, Germany and South America.”
According to him, purchasing SimonsVoss is a chance worth taking. “SimonsVoss is a well-regarded brand with a track record of innovation, which will be highly complementary to Allegion’s growth strategy,” he said. “SimonsVoss will enable Allegion to expand its product offering to its customers, and Allegion will offer extensive market coverage and demand creation capabilities that will benefit the SimonsVoss brand. Together, we will be able to provide even more comprehensive solutions for our customers.”
Also, the deal makes sense from a regional perspective, Shannon said. “Like Allegion’s European brands, SimonsVoss has a strong local legacy. In fact, SimonsVoss is a top brand in Europe with a leadership market position in Germany,” he said. “By adding SimonsVoss to the Allegion family of brands, we are expanding our technological expertise in Germany, Europe, and the whole EMEIA region, as well as strengthening our global leadership in electro-mechanical convergence.”
He added: “Combining our two companies, with their rich histories, will expand and strengthen what Allegion offers in the security industry – in terms of products, services, expertise, and innovation. In both EMEIA and around the globe, we expect to create more opportunities for continued growth.”
On what other regions Allegion will expand into, Shannon said the company does not rule out any possibilities. “We continuously examine many opportunities as part of our overall corporate strategy,” he said. “We’re not limiting ourselves to any one region and believe there are more opportunities to expand our business globally.”
Allegion will acquire SimonsVoss and related assets, and SimonsVoss will continue to market its products, solutions, and services under its name as a brand of Allegion, Shannon said.