DUBLIN - Allegion plc (NYSE: NYSE:ALLE), a significant player in the global security products and solutions sector, has announced the acquisition of SOSS Door Hardware through one of its subsidiaries. SOSS, known for its high-quality hinges and door hardware, primarily operates within the North American non-residential market.
SOSS, established in 1903 and recognized for inventing the concealed hinge, offers a range of products including the SOSS Invisible Hinge, fire-rated, heavy-duty, and other specialty hinges widely utilized in industrial, commercial, and institutional settings.
The newly acquired company will become part of the Allegion Americas segment, under the leadership of Allegion Senior Vice President Dave Ilardi. Ilardi highlighted the strategic fit of SOSS within Allegion's portfolio, noting that SOSS's solutions will complement existing Allegion brands like Ives, Glynn-Johnson, and Zero International. He anticipates that this acquisition will enable Allegion to offer a more comprehensive portfolio to customers and support growth in a core area of their business.
Financial details of the transaction have not been disclosed.
Allegion, with a history of $3.7 billion in revenue in 2023, is known for its commitment to security around the door and adjacent areas. Its product range is designed to secure people and assets across various environments, including homes, businesses, schools, and institutions. The company's security products are sold globally and form part of a portfolio that includes notable brands such as CISA®, Interflex®, LCN®, Schlage®, SimonsVoss®, and Von Duprin®.
This acquisition is a forward-looking statement within the Private Securities Litigation Reform Act of 1995, and it involves projections and assumptions about Allegion's future operations and market performance. As with all forward-looking statements, they are subject to risks, uncertainties, and changes in circumstances that could significantly affect the company's actual results.
The information reported is based on a press release statement and does not include any speculative or forward-looking implications beyond what has been officially announced.
In other recent news, Allegion plc reported a rise in its second-quarter earnings per share (EPS) by 11.4% and a 5.8% increase in revenue. This strong financial performance led to the company raising its full-year outlook. Allegion also declared a quarterly dividend of $0.48 per share, indicating its commitment to investor returns.
The company has seen a change in leadership with the election of Lauren B. Peters as the new chair of its Board of Directors, effective September 2024. Peters, with her extensive experience and strategic acumen, is expected to contribute significantly to Allegion's growth.
Analysts have given mixed reviews on Allegion's stock. Mizuho Securities maintains a Neutral rating, appreciating the company's strong business fundamentals but expressing caution over market uncertainties. Barclays, however, downgraded Allegion's rating from Equal-weight to Underweight due to potential challenges in the US commercial construction sector.
Allegion has continued to expand its portfolio through strategic acquisitions and the introduction of a smart lock integration with Airbnb. These recent developments reflect Allegion's ongoing commitment to growth and maintaining its position in the security industry.
InvestingPro Insights
Allegion's recent acquisition of SOSS Door Hardware aligns well with the company's strong financial position and market performance. According to InvestingPro data, Allegion boasts a market capitalization of $13.29 billion, reflecting its significant presence in the security products sector.
The company's financial health is further underscored by its revenue of $3.67 billion in the last twelve months as of Q2 2024, with a robust gross profit margin of 43.77%. This solid financial foundation provides Allegion with the resources to pursue strategic acquisitions like SOSS Door Hardware, potentially enhancing its product portfolio and market position.
InvestingPro Tips highlight Allegion's consistent dividend performance, having raised its dividend for 10 consecutive years and maintained payments for 11 years. This track record of shareholder returns, coupled with a current dividend yield of 1.26%, may appeal to income-focused investors.
The company's stock has shown impressive performance, with a one-year price total return of 54.65% and a strong return over the last decade. This positive momentum is further evidenced by the stock trading near its 52-week high, at 99.7% of that level.
It's worth noting that Allegion operates with a moderate level of debt and its liquid assets exceed short-term obligations, suggesting a stable financial position that could support future growth initiatives and acquisitions.
For investors seeking more comprehensive analysis, InvestingPro offers 15 additional tips for Allegion, providing deeper insights into the company's financial health and market position.
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