PRINCETON (S&P Global Ratings) April 25, 2022--S&P Global Ratings today said that Allegion PLC's acquisition of Stanley Access Technologies will widen the company's product suite into automatic doors for commercial applications, without causing a deterioration in its existing credit quality. While we expect the $900 million primarily debt-funded transaction to cause adjusted leverage to rise to about 2.5x (from 1.7x at year-end 2021), we believe these measures are well within our tolerance of 2x-3x for the ratings. Furthermore, we expect the company will maintain a prudent financial policy, such that adjusted leverage will improve toward 2x over the next 12 months as Allegion prioritizes debt repayment over discretionary shareholder returns via share repurchases upon completion of the transaction.
