Allegion, a leading global provider of security products and solutions, has, through two of its subsidiaries, finalized the sale of Bocom Wincent Technologies Co., Ltd. (Bocom Wincent) to an affiliate of American Industrial Acquisition Corporation.
Allegion, a leading global provider of security products and solutions, has, through two of its subsidiaries, finalized the sale of Bocom Wincent Technologies Co., Ltd. (Bocom Wincent) to an affiliate of American Industrial Acquisition Corporation.
Allegion announced its intent to sell the majority stake of Bocom Wincent in September.
Bocom Wincent operates a security system integration business exclusively in China and delivered 2014 revenue and operating income of US$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.
“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, at the time. “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.”
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