ASSA ABLOY acquires Phillips, a leading Lock Company in Mexico
ASSA ABLOY AB, the world's largest lock group, is to acquire one of Mexico's leading lock companies, Grupo Industrial Phillips S.A. de C.V.
Phillips produces a full range of lock products primarily for the Mexican lock market. The company also has exports to other Latin American countries. Its main product is the rim lock - the most common type of lock used in Mexico. The product portfolios of Phillips and Scovill are highly complementary with almost no overlap.
Phillips is located in Mexico City and has an extensive distribution network. The company was founded in 1959 and has approximately 2,500 employees. Phillips has shown good growth and high profitability over a number of years. As Scovill is also located in Mexico City there are synergies and growth opportunities that will benefit both companies.
The acquisition of Phillips is subject to approval by Mexican Antitrust Authorities. The acquisition is expected to be finalized during the second quarter of 2001.
ASSA ABLOY first established itself in Mexico in 1998 through the acquisition of Scovill. Mexico has a population of around 100 million. The country is politically stable and is experiencing strong economic growth. The demands for new construction and security are considerable and Phillips is well-positioned to capitalize on this opportunity.
Phillips had sales of approximately SEK 600 M in 2000 with a high EBIT margin. The goodwill will amount to approximately SEK 140 M and will be amortized over 20 years. The acquisition will be EPS neutral during 2001 and positive from 2002.
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 18 billion (approximately USD 2 billion) and the number of employees is approximately 20,000.
ASSA ABLOY är världsledande inom lås- och dörrlösningar och erbjuder mekaniska och elektromekaniska lås, digitala dörrlås, säkerhetsdörrar, entréautomatik, hotellsäkerhet och lösningar för säker identifiering, främst inom identitets- och passerkontroll, samt en rad andra relaterade produkteroch tjänster.
Sedan ASSA ABLOY bildades 1994 har koncernen utvecklats från ett regionalt bolag till en internationell koncern med cirka 47 500 anställda, verksamhet i mer än 70 länder och en en omsättning på 76 miljarder SEK.