Allegion To Divest Bocom Wincent Technologies - Quick Facts

(RTTNews) - Allegion plc (ALLE), a provider of security products and solutions, said that it has signed, through two of its subsidiaries, a definitive agreement to sell a majority stake in Bocom Wincent Technologies Co., Ltd.. American Industrial Acquisition Corporation or AIAC, through an affiliate, is purchasing the majority stake.

Bocom Wincent operates a security system integration business exclusively in China and delivered 2014 revenue and operating income of $97.3 million and $4.5 million, respectively. Revenues for this business have historically been weighted to the second half of the year, reflecting typical seasonality of contract awards.

Allegion noted that it will retain 15-percent ownership in Bocom Wincent. Under the terms of the transaction, Allegion may receive up to $75 million based on the future performance of Bocom Wincent. Other terms of the transaction were not disclosed. The transaction is expected to close in the fourth quarter of this year, subject to regulatory approvals.

Allegion expects to record a charge from the sale of approximately $80 million to $90 million in the third quarter of this year.