A well manufactured transaction

Ingersoll Rand acquires remaining interest in Italian company, CISA
Tuesday, March 1, 2005

CARMEL, Ind. - Ingersoll Rand, which through its security and safety sector is a provider of security products and services, completed its acquisition of Italy-based CISA S.p.A. in late January for approximately EUR 200 million ($256 million).

The deal is part of the company’s shift in strategy nearly five years ago to build a larger footprint on a global front - as it already accounts for a solid presence in the North American market through its Schlage mechanical locking brand. According to Michael Lamach, senior vice president and president of the security and safety sector with Ingersoll Rand, CISA was “very much an active step” toward building the worldwide presence.

The company already held a 30-percent interest in CISA, a manufacturer of security and safety products, by the first quarter of 2002. Lamach said the move to acquire a percentage in the company was the first step of the three-part transaction, which extends its product lines and geographic reach in the Mediterranean market in Europe.

“CISA also has a nice footprint through eastern Europe, as well as through Asia and South America,” Lamach said.

CISA’s product line includes electronic locking systems, panic hardware and padlocks, and it markets its product worldwide. Lamach said now that the company, which employs approximately 3,000 and has locations throughout the world, is under Ingersoll Rand’s umbrella, the electronic side of the company’s products may be brought to the North American market with the aid of Ingersoll Rand’s financial backing.

“CISA, as a small company versus Ingersoll Rand being a large company, makes us able to invest in key technologies and key markets,” Lamach said. “The nice part is that the business is growing.”

According to Lamach, the Italian company’s product lines were complimentary.

“For the most part it was a perfect fit and we didn’t have any overlap at all,” he said.

Not only does the CISA deal move the company forward in having products to provide fully integrated solutions, but its upper management also matched.

“What we were most surprised when we finally finished the acquisition was how comfortable it felt,” Lamach said. “Our cultures are very much the same as well as the styles of management. It was wonderful to see the depth of the company.”