ASSA ABLOY's acquisition of Spanish TESA completed
TESA, originally part of the Yale Intruder acquisition in beginning of 2000 was deferred due to pending regulatory approval in the US. After close down of the subcontracted manufacturing for the sellers hotel locks business, approval has been received and the acquisition was completed today.
TESA, is located with its main factory in Irun in northern Spain. The company exports 55% of it's sales, mainly to Central- and Latin America, East Europe, France and Italy. Subsidiaries in Mexico and France are part of the acquisition. The company is a leading producer of cylinders, tubular lock cases and advanced electromechanical products. The product portfolio includes a full product program, including security doors.
TESA has shown stable growth and strong profitability. The demerger process of the subcontracting hotel lock business will initially result in a volume drop and lower earnings. Corrective actions are being taken. Synergies with other Group companies, especially in the South Europe region, are substantial and will help to bring back the company to it's former performance level.
"It has been a long period for the employees between the first announcement of our new owners in March 2000 until that we now finally can become a part of the ASSA ABLOY Group. We are all pleased that the deal is done and are looking forward towards developing business with our new sister companies", says José Agustin Telleria, managing director of TESA.
"TESA is one of the leaders in our industry in South Europe. It is a well-managed company with lots of skills, tradition and pride. Their presence will strengthen our position in the region and also on the continued development of strategic products". Says Carl-Henric Svanberg, president and CEO of ASSA ABLOY AB.
The acquisition price amount to GBP 85 M. The acquisition will create goodwill of approximately SEK 600 M which will be tax deductible. Due to the hotel lock demerger process the acquisition will initially be EPS dilutive but positive from 2003.
The ASSA ABLOY Group is the world's leading manufacturer and supplier of locking solutions,
dedicated to satisfying end-user needs for security, safety and convenience. Current sales for the Group are in excess of
SEK 20 billion (approximately USD 2 billion) and the number of employees is more than 25,000.
ASSA ABLOY is the global leader in door opening solutions and offers mecahnical and electromechanical locks, digital door locks, security doors, entrance automation, hotel security and secure identity solutions, primarily in identity and access management, as well as a number of other related products and services.
Since its formation in 1994, ASSA ABLOY has grown from a regional company into an international Group with some 47,000 employees operating in more than 70 countries and sales of around SEK 71 billion.