The Anatomy of a Deal: OpenGate's Carve-Out and ASSA ABLOY's Conquest

NEW YORK, NY – December 05, 2025 – The world of industrial M&A is often seen through the simple lens of buying and selling. But the recent sale of Sargent and Greenleaf’s (S&G) high-security locking division to global access solutions leader ASSA ABLOY is a masterclass in strategic value creation and market consolidation. This transaction, orchestrated by private equity firm OpenGate Capital, is more than a line item on a balance sheet; it’s a story of operational transformation, strategic divestment, and the relentless reshaping of the global security supply chain.

For OpenGate Capital, the deal marks the successful culmination of a five-year journey that began with the acquisition of S&G from Stanley Black & Decker in May 2019. The move was a classic example of a corporate carve-out, where a private equity firm acquires a non-core division of a larger conglomerate with the goal of unlocking its standalone potential.

The Private Equity Playbook: From Carve-Out to Strategic Exit

OpenGate specializes in exactly these kinds of complex transformations. Upon acquiring S&G, the firm didn’t just provide capital; it deployed its in-house operations team to fundamentally overhaul the business. This wasn't merely about trimming costs. It was a root-and-branch revitalization focused on growth and efficiency.

The firm’s strategic guidance led to a complete restructuring of S&G's supply chain, enhancing manufacturing reliability and improving forecasting accuracy. These operational improvements had a direct impact on the customer experience, boosting on-time delivery and re-establishing trust with suppliers and clients alike. The company also expanded its global footprint, building new international partnerships that opened up previously untapped sales channels and product development opportunities.

“This transaction is a testament to the incredible work of our team,” said Chris Casazza, S&G CEO, in a statement. “I’m proud of everything we’ve accomplished with OpenGate since 2019.”

This success is not an isolated incident for OpenGate. The firm has a well-documented history of turning industrial carve-outs into high-performing assets. Its second institutional fund boasted an impressive internal rate of return of 40% annually, fueled by successful exits like Gabriel Ride Control, which generated a 40x return, and the recent sale of French waterproofing firm SMAC for 10 times its initial investment. The S&G divestment is part of a productive year for OpenGate, which also saw the sale of Fiven and Verdant Specialty Solutions, returning over $400 million to its fund investors.

This deal also highlights the strategic relationships built during these transformations. “This marks our second successful transaction with ASSA ABLOY, a testament to the strong working relationship and mutual respect between our teams,” noted Andrew Nikou, Founder and Managing Partner at OpenGate. The firm previously sold Premier Steel Doors, another S&G acquisition, to ASSA ABLOY in December 2024.

Interestingly, OpenGate is retaining a piece of the original S&G acquisition: Delaney Hardware, a provider of premium residential hardware. This move suggests a focused strategy to continue growing Delaney as a separate entity, targeting the distinct dynamics of the residential market.

ASSA ABLOY's Calculated Consolidation

From ASSA ABLOY's perspective, the acquisition is a highly strategic move that reinforces its dominance in the access solutions market. With nearly 400 acquisitions since its formation in 1994, the company has made M&A a core pillar of its growth strategy, targeting 5% acquired growth over each business cycle.

The addition of S&G's high-security locking division, with its reported 2024 sales of approximately $45 million and a healthy EBIT margin, fits perfectly into this plan. ASSA ABLOY has stated the acquisition will be immediately accretive to its earnings per share (EPS). It's a textbook example of what the company calls "growing the core"—integrating complementary products to strengthen its offerings in established markets like North America.

This acquisition comes at a time of intense activity in the security sector. While the S&G deal's terms were undisclosed, the market saw Honeywell acquire Carrier's Global Access Solutions business for a staggering $4.9 billion earlier this year, underscoring the high valuations placed on leading security technology providers. With the global access control market projected to grow from around $19 billion in 2025 to over $61 billion by 2035, the race to capture market share is fierce.

ASSA ABLOY's strategy isn't just about size; it's about technological evolution. The company is actively driving the industry's shift from traditional mechanical locks to sophisticated electromechanical and connected digital solutions. With 4% of its annual sales dedicated to R&D, it is positioning itself at the forefront of this transition, which saw its electromechanical product sales grow by 8% last year. The integration of S&G's expertise will undoubtedly bolster its portfolio in the commercial, institutional, and high-security sectors where this evolution is critical.

A Shifting Landscape: Innovation and Integration

The ASSA ABLOY-S&G deal is a microcosm of broader trends disrupting the security and supply chain landscape. The industry is rapidly moving away from fragmented, single-purpose security products toward unified platforms that integrate access control, video surveillance, and intrusion detection. Customers are demanding seamless, scalable solutions, and consolidation is a direct response to that demand.

Looking ahead, several key innovations are set to define the market in 2025 and beyond. The demand for touchless access, driven by both convenience and hygiene, is accelerating the adoption of mobile credentials and biometric technologies. Simultaneously, cloud-based security management is becoming the new standard, offering remote access, greater flexibility, and easier integration without the need for cumbersome on-site infrastructure.

Perhaps the most significant disruption will come from the integration of Artificial Intelligence. AI and machine learning are being embedded into access control systems to enable predictive security—identifying patterns, detecting anomalies, and automating threat responses before they escalate. For companies managing complex supply chains, these intelligent security systems offer a new layer of protection and operational awareness for warehouses, distribution centers, and high-value assets in transit.

As ASSA ABLOY integrates S&G's division, it gains not just market share but also valuable assets to compete in this new technological arms race. For OpenGate Capital, it's another successful chapter in its value-creation playbook. And for the industry, it's another clear signal that the future of security lies in strategic integration, technological innovation, and the constant pursuit of a more connected and resilient global supply chain.