Allegion, a leading global provider of security products and solutions, has signed, through two of its subsidiaries, a definitive agreement to sell a majority stake in Bocom Wincent Technologies Co., Ltd. (Bocom Wincent). American Industrial Acquisition Corporation (AIAC), through an affiliate, is purchasing the majority stake.
Allegion, a leading global provider of security products and solutions, has signed, through two of its subsidiaries, a definitive agreement to sell a majority stake in Bocom Wincent Technologies Co., Ltd. (Bocom Wincent). American Industrial Acquisition Corporation (AIAC), through an affiliate, is purchasing the majority stake.
Bocom Wincent operates a security system integration business exclusively in China and delivered 2014 revenue and operating income of $97.3 million and $4.5 million, respectively. Revenues for this business have historically been weighted to the second half of the year, reflecting typical seasonality of contract awards. Allegion will retain 15-percent ownership in Bocom Wincent. Under the terms of the transaction, Allegion may receive up to $75 million based on the future performance of Bocom Wincent. Other terms of the transaction were not disclosed. The transaction is expected to close in the fourth quarter of this year, subject to regulatory approvals.
“Today’s announcement is part of Allegion’s strategic focus on driving emerging market growth through its core mechanical and electronic hardware business in Asia Pacific,” said David D. Petratis, chairman, president and CEO of Allegion.
“To all of the Bocom Wincent team members, thank you for your contributions to Allegion and the industry as a whole. We look forward to your future success.”
Allegion expects to record a charge from the sale of approximately US$80 million to $90 million in the third quarter of this year.
Product Adopted:Software