Yahoo Finance Allegion (ALLE) Enhances Product Portfolio With Unicel Buyout
Allegion plc ALLE recently completed the acquisition of Unicel Architectural Corp. through one of its subsidiaries. The financial terms of the transaction have been kept under wraps.
Headquartered in Quebec, Canada, Unicel Architectural specializes in producing highly engineered glass, timber and aluminum building solutions. The company’s products are sold in education, healthcare, government and other non-residential facilities across the United States and Canada.
Acquisition Rationale
The latest buyout is in sync with Allegion’s policy of acquiring businesses to expand its market share and customer base. The inclusion of Unicel Architectural’s expertise in glass and building envelope solutions, coupled with its strong innovation capabilities, will enable Allegion to boost its product portfolio within the non-residential business. It will help ALLE expand its presence in lucrative institutional end markets.
Unicel Architectural will be incorporated into Allegion’s Americas segment and will be led by its senior vice president, Dave Ilardi.
Acquisitions are an essential aspect of ALLE's growth strategy. This month, the company acquired Krieger Specialty Products, which is expected to boost its door and frame portfolio. In March, it acquired Dorcas, which enabled the company to boost its security products portfolio.
Also, in February 2024, it acquired Boss Door Controls, thereby expanding its U.K. business with a complementary product portfolio and broader channel access. This apart, in January, it acquired assets of software-as-a-service (SaaS) workforce management solutions company Plano Group. The buyout expanded the company’s Interflex portfolio and its AWFM business with new capabilities in SaaS models.
Zacks Rank and Price Performance
ALLE currently carries a Zacks Rank #2 (Buy). Higher adoption of advanced technologies and solutions in the electronics security products market is expected to drive Allegion’s performance in the quarters ahead.
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In the past six months, the stock has gained 5.5% compared with the industry’s 16.5% growth.
The Zacks Consensus Estimate for its 2024 earnings is pegged at $7.08 per share, up 1% from the 60-day-ago figure.
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Some other top-ranked stocks from the same space are presented below.
Napco Security Technologies, Inc. NSSC sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NSSC delivered a trailing four-quarter average earnings surprise of 16%. In the past 60 days, the Zacks Consensus Estimate for Napco Security’s fiscal 2024 (ending June 2024) earnings has increased 3.8%.
MSA Safety Incorporated MSA carries a Zacks Rank #2. MSA delivered a trailing four-quarter average earnings surprise of 16.4%. In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has inched up 0.3%.
Brady Corporation BRC presently has a Zacks Rank of 2. BRC delivered a trailing four-quarter average earnings surprise of 6.7%. In the past 60 days, the Zacks Consensus Estimate for its fiscal 2024 (ending July 2024) earnings has risen 3.3%.
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Allegion PLC (ALLE) : Free Stock Analysis Report
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