MARKUS Partners advises family-owned enterprise ECO Schulte in the strategic partnership with Allegion plc
March 2014 - Allegion plc (NYSE: ALLE), a leading global provider of security products and solutions, announced it has signed a definitive agreement to sell its Denmark-based producer of door levers, Randi. The buyer is Eco Schulte GmbH, a family-owned German producer of trim and lock products. In return, Allegion will receive a minority stake in Eco Schulte, forging a mutually beneficial partnership between Allegion and Eco Schulte. The transaction is expected to close early in the second quarter of 2014, with completion subject to German merger control clearance.
MARKUS Partners acted as exclusive financial advisor to the family and to the Eco Schulte Group during the whole transaction.
The deal furthers Allegion’s global growth strategy, strengthening its presence in the German market, while providing Eco Schulte the benefits of a multi-national partner. Eco Schulte is a third generation family-owned manufacturer of high-quality door function systems including levers, mechanical exits, closers and locks. It sells its products through door manufacturers, construction wholesalers, and partners.
“Through this partnership, Allegion is focusing its portfolio to better serve our customers while creating business alignment,” said Dave Petratis, chairman, president and CEO of Allegion. “In exchange for Randi-Denmark, we are gaining a valued partner in a growing market that will support our strategy to improve our European business, while providing Eco Schulte access to a broader product portfolio.”
“We are excited about the new strategic partnership with Allegion plc and are sure that both companies complement each other very well on the product as well as on the production level,” said Tobias Schulte, Managing Director of Eco Schulte. “We are now on the path to become a consistent system provider in the region and set to continue providing our customers added value with the diverse portfolios of both companies.”
The transaction includes a set of commercial agreements related to product sales, product supply, and potentially joint product development. Eco Schulte will be named as a dealer of a large portion of the Allegion EMEIA portfolio in Scandinavia. Conversely, Allegion will have continued rights to the Randi product line for sale throughout Europe. Allegion will also receive a seat on Eco Schulte’s Advisory Board. Randi products will continue to be sold and available in their current markets.
Allegion (NYSE: ALLE) generates a turnover of $2 billion as a provider of security solutions for homes and businesses and employs more than 7,800 people. Allegion sells products in more than 120 countries across the world and comprises 23 global brands, including strategic brands CISA®, Interflex®, LCN®, Schlage® and Von Duprin®.
About ECO Schulte GmbH & Co. KGwww.eco-schulte.com
A family-owned company from the Sauerland area is one of the leading door function system providers and an international manufacturer with more than 400 employees across the globe. ECO disposes of its own production and delivery network in Europe and Asia as a result of a constant growing. Its locations represent ECO in Germany, Austria, Poland and China.