ASSA ABLOY acquires Viro Locks of South Africa
Viro Locks Pty Ltd is one of the leading lock companies on the South African market. The company's main product lines are padlocks, cylinders, mortise locks and cam locks. Viro is family owned and has sales of SEK 130 M. Performance has been steadily weakening and during the last couple of years the company has been showing losses. However, after a restructuring program the company's result and cash flow has been turned positive.
In August 2000, ASSA ABLOY acquired 100% of the shares in Yale-Union Security South Africa as part of the global Yale Intruder Security Group acquisition. The two South African businesses compliment each other well and the acquisition of Viro consolidates ASSA ABLOY's position in the region. This is a region with growing security needs and the companies are expected to show good growth in South Africa as well as through export to others parts of Africa.
The purchase price of SEK 48 M is in level with net assets. There are significant rationalisation opportunities and synergies with existing operations and the acquisition is expected to be EPS enhancing from 2002.
For further information, please contact
Carl-Henric Svanberg, President & CEO, tel: +46-8-506 48551 or 46-70-510 0551,
or Göran Jansson, CFO, tel. +46-8-506 48572 or 46-70-698 85 72
ASSA ABLOY AB (publ)
P.O. Box 70340, S-107 23 Stockholm
Tel: +46 8 506 485 00, Fax: +46 8 506 485 85
Visiting address: Klarabergsviadukten 90
The ASSA ABLOY Group is the world's leading manufacturer and supplier of locks and associated products,
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 20,000.