Allegion to Acquire Korean Electronic Lock Company Milre Systek, No Terms

Allegion, plc ALLE, a leading global security products and solutions provider, has agreed, through one of its subsidiaries, to acquire Milre Systek Co., Ltd. The transaction is expected to close in the third quarter of this year. Milre is a leading security solutions manufacturer in South Korea, focused on producing high-quality and innovative electronic door locks. The Milre suite of products – sold across both retail and commercial distribution channels – includes mortise, rim and locker locks. Milre generated sales of approximately $13 million in 2014. Following the close of the transaction, Milre is expected to operate within Allegion's Asia Pacific region. Allegion Senior Vice President and President of Asia Pacific William Yu said Milre has a strong, positive reputation that contributes to the company's success, supporting Allegion's growth in the region. "Digital door locks is a key product category for safety and security solutions globally, as well as for the Allegion portfolio. Leveraging Milre products and brand positioning in this space will build on Allegion's presence in Asia – especially South Korea," Yu said. "Additionally, Milre's independent research and development capacity in electronic products will synergize with Allegion's hardware expertise. It will be a strategic fit for Allegion to grow our leadership in electro-mechanical convergence in yet another geographic market." Milre CEO Sang Ok Lee agreed, saying Allegion also offers the company strategic expansion options. "Joining Allegion gives Milre access to additional sales networks that can foster new growth opportunities for our business throughout Asia and around the world," said Lee. "Most importantly, though, both companies value creating peace of mind for our customers. We're excited to collaborate with Allegion on this shared passion." Terms of the transaction were not disclosed.