dormakaba agrees to acquire Mesker Openings Group, expanding business in North America

dormakaba agrees to acquire Mesker Openings Group, expanding business in North America

Reamstown, PA - 8 November 2016 - dormakaba has signed an agreement to acquire US-based Mesker Openings Group and expects to close the transaction in 2016 upon the satisfaction of customary closing conditions.

With the consummation of the acquisition of Mesker, a leader in the commercial door and hardware industry in the USA, dormakaba will increase the breadth of its product offering in North America. “The acquisition of Mesker is a continuation of the industrial logic underlying the merger to dormakaba and a consistent implementation step of our strategy for North America“, says CEO Riet Cadonau. “It will expand our offering in North American to include all essential door components as well as secure access to buildings and rooms from a single source.”

Mesker was founded in 1864 and is based in Huntsville (Alabama/USA). It offers a diversified product portfolio for commercial, industrial and institutional uses under four well-recognized brands in the industry (Mesker Door, Hollow Metal Xpress, Design Hardware, and Wood Door Xpress). The company’s five manufacturing and distribution facilities are strategically located in key regions providing significant efficiencies in delivering customizable products with very short lead times.  

 

“By acquiring Mesker, we will add to our portfolio such products as manual doors and frames”, says Michael Kincaid, COO AS AMER. “This will enable us to serve customers more effectively and broadly, as some customer groups in our market request a full package, including doors.” The addition of Mesker will also provide dormakaba with expanded distribution network and channels, and it will open up attractive sales opportunities due to dormakaba’s presence in verticals such as Lodging and Multihousing, as well as in sales channels such as Security Hardware, Contract Hardware Distribution and Services.

Mesker has about 400 employees and generated turnover of about USD 67 million in 2015 (US GAAP), with an adjusted EBITDA margin close to 20%.

The purchase price is USD 142.5 million, which amounts to an EBITDA multiple of 8.9x on 2016E basis. The acquisition is expected to be accretive to Group EBITDA margin as well as to EPS from day one.

 

For further information:      

Stephen Pollack

Vice President – Marketing

(859) 253-4744

stephen.pollack@dormakaba.com

 

 

 

____________________________________________________________________________

 

dormakaba Group is one of the top three companies in the global market for access and security solutions. With strong brands such as Dorma and Kaba in our portfolio, we are a single source for products, solutions, and services related to doors and secure access to buildings and rooms. With around 16,000 employees and numerous cooperation partners, we are active in over 130 countries. dormakaba Group is headquartered in Rümlang (Zurich/Switzerland) and generates an annual turnover of over CHF 2 billion.

 

SIX Swiss Exchange: DOKA (formerly: KABN / KABNE)

 

Further information at www.dormakaba.com

______________________________________________________________________

 

 

 

Disclaimer

This communication contains certain forward-looking statements, e.g. statements using the words "believes", "assumes", "expects", or formulations of a similar kind. Such forward-looking statements are based on assumptions and expectations which the company believes to be well founded, but which could prove incorrect. They should be treated with appropriate caution because they naturally involve known and unknown risks, uncertainties and other factors which could mean that the actual results, financial situation, development or performance of the company or Group are materially different from those explicitly or implicitly assumed in these statements. Such factors include:

 

  • The general economic situation
  • Competition with other companies
  • The effects and risks of new technologies
  • The company's ongoing capital requirements
  • Financing costs
  • Delays in the integration of acquisitions
  • Changes in operating expenses
  • Fluctuations in exchange rates and raw materials prices
  • Attracting and retaining skilled employees
  • Political risks in countries where the company operates
  • Changes to the relevant legislation
  • Realization of synergies
  • Other factors named in this communication

 

If one or more of these risks, uncertainties or other factors should actually occur, or if one of the underlying assumptions or expectations proves incorrect, the consequences could be materially different from the assumed ones. In view of these risks, uncertainties and other factors, readers are cautioned not to place undue reliance on such forward-looking statements. The Company accepts no obligation to continue to report or update such forward-looking statements or adjust them to future events or developments. The Company emphasizes that past results and performances cannot lead to conclusions about future results and performances. It should also be noted that interim results are not necessarily indicative of year-end results. Persons who are unsure about investing should consult an independent financial advisor.

This press release constitutes neither an offer to sell nor a call to buy securities of dorma+kaba in any legal system.

dormakaba®, Kaba®, DORMA®, Com-ID®, Ilco®, La Gard®, LEGIC®, SAFLOK®, Silca® etc. are registered brands of dormakaba Group. Country-specific

Requirements or business considerations may mean that not all dormakaba Group products and systems are available in all markets.

back »
Text Download
Picture download
teaser_image