HgCapital is pleased to announce that it has agreed the sale of SimonsVoss, a European leader in innovative electronic battery-powered locking and access control systems, to Allegion plc (through its subsidiary Allegion Luxembourg Holding and Financing S.à.r.L), a leading global security products and solutions provider, headquartered in Ireland and listed on the NYSE, subject to regulatory approval. The transaction is valued at €210 million.
Founded in 1995, SimonsVoss has a proven track record of developing state-of-the-art electronic technologies with a pipeline of pioneering new products. The Company currently generates the majority of its revenues in Germany but is increasing sales in a number of international markets.
During HgCapital’s involvement, SimonsVoss has evolved from a single-product focused company into a broad solutions provider in electronic access control, offering a comprehensive range of products that incorporate the latest technology trends. The management team and the company’s sales capability have been strengthened with a focus on pushing growth through new customer groups, distribution channels and geographic markets. As a strong brand that has invested significantly in R&D and is well-known for innovation, SimonsVoss has a team of global experts and significant technical expertise in safety and security. The company generated sales of €52 million in 2014 and has approximately 275 employees.
Allegion is a $2 billion company focused on providing security solutions for homes, businesses, schools and other institutions. Allegion employs nearly 8,500 people and sells products in almost 130 countries. As a strategic buyer, Allegion will be able to expand its innovative presence and help SimonsVoss to grow in its next stage of development.
David D. Petratis, Chairman, President and CEO of Allegion said:
“SimonsVoss is highly complementary to Allegion’s portfolio and provides sound synergy opportunities. By adding SimonsVoss to the Allegion family of brands, we are expanding our technical expertise and solidifying our global leadership in electro-mechanical conversion. We believe SimonsVoss has strong growth prospects and established channel partners in a number of international markets, allowing Allegion to expand its product offering, while Allegion’s demand creation capability will benefit the SimonsVoss brand.”
Bernhard Sommer, CEO, SimonsVoss commented:
“We are pleased with what we have achieved with the active support of HgCapital throughout our partnership. Allegion’s global footprint in both the commercial and residential security markets will help drive new growth opportunities for us. At the same time, SimonsVoss can contribute industry-leading technology to help Allegion develop more security solutions for unique customer needs. This is a great fit for both companies, and we look forward to joining the Allegion family.”
Justin von Simson, Partner at HgCapital, said:
“HgCapital is proud to have partnered with SimonsVoss since 2010, when we identified a technology leader and disruptor in the electronic locking industry. We are delighted to have worked with an experienced management team, to support the growth of the business in international markets and advance their technological edge. This is a strong base from which SimonsVoss can continue to grow under new ownership and we are glad to have found the ideal future partner in Allegion.”
Robert W. Baird acted as financial advisor, and Linklaters LLP acted as legal advisors to HgCapital on this transaction.