Allegion Sells UK Door Business to Restructure EMEIA - Analyst Blog

One of the leading providers of security products and solutions, Allegion plc (ALLE) recently declared that it has completed the sales of its United Kingdom (UK) door businesses to an affiliate of Alcyon Financial Limited as announced in Jul 2014. The deal includes the Dor-o-Matic automatic door business, the Martin Robert performance steel doorset business and the UK service organization.

The recent acquisition will help the company trim its portfolio, thus freeing up its resources for the fast growing security business in the Europe, Middle East, India and Africa (EMEIA) region.

At its second quarter 2014 earnings call, Allegion had announced its plans to restructure the EMEIA segment to improve its operational efficiencies and cost structure. The recent divesture is a part of this restructuring strategy.

Allegion offers an extensive portfolio of mechanical and electronic security products and boasts a range of market-leading brands, including CISA, Interflex, aptiQ, LCN, Schlage and Von Duprin. The company enjoys leading positions in some of the major end-user markets backed by its expertise and knowledge of client's needs and regulatory requirements. This has helped the company to acquire a major share of the security markets in an era of digital revolution. With enhanced focus on security products, the company is releasing its resources from its door business.  

Allegion carries a Zacks Rank #3 (Hold).

Other Stocks to Consider

Brady Corp. (BRC) is a better-ranked stock in the same sector with a Zacks Rank #2 (Buy). Investors can also consider KB Home (KBH) and Toll Brothers Inc. (TOL), stocks from the homebuilding industry, both holding a Zacks Rank #2 (Buy).

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