ASSA ABLOY AB ORD NEW - ASAZF STOCK NEWS

ASSA ABLOY has announced the acquisition of Sure-Loc, a prominent supplier of residential locks in the US, in a move aimed at enhancing its product offerings. Established in 2002 and headquartered in Salt Lake City, Sure-Loc reported sales of approximately 14 MUSD in 2020 with a healthy EBIT margin. This acquisition aligns with ASSA ABLOY's strategy to strengthen its position in mature markets and is projected to be accretive to earnings per share (EPS) from the outset. The new addition supports ASSA ABLOY's ambition to expand its residential business in the US.

ASSA ABLOY has made a strategic investment in Paravision, a top facial recognition provider, as part of a MUSD 23 funding round. This collaboration is aimed at enhancing biometric solutions, aligning with HID Global's goal to integrate facial recognition into secure identity verification applications. The investment reflects ASSA ABLOY's commitment to innovate in access solutions, with the company generating SEK 88 billion in sales and employing 48,000 individuals globally.

In the first quarter of 2021, ASSA ABLOY reported a 2% decline in net sales to SEK 21,805 M, despite 4% organic growth. The company experienced strong growth in the Asia Pacific region and Entrance Systems, but Global Technologies saw a notable sales decline. Operating income (EBIT) increased by 16% to SEK 3,187 M, with an operating margin of 14.6%. Additionally, net income rose to SEK 2,253 M, while operating cash flow surged 118%.

ASSA ABLOY AB (Reg. No. 556059-3575) announced its Annual General Meeting (AGM) set for April 28, 2021, to be conducted via postal voting due to the Covid-19 pandemic. Shareholders must register by April 20, 2021, and submit their advance votes by April 27, 2021. Key agenda items include a proposed dividend of SEK 3.90 per share, election of Board members including a raise in fees, and the approval of a long-term incentive program for senior executives. The total shares outstanding are approximately 1.11 billion, with key proposals requiring at least two-thirds approval.

ASSA ABLOY has acquired the textile services division of Invengo Information Technology Co., Ltd. This acquisition strengthens ASSA ABLOY's position in the RFID ecosystem and enhances growth opportunities within smart components. Invengo Textile Services, based in France, generated sales of approximately MEUR 11 in 2020. The deal is anticipated to be neutral to earnings per share from the outset. This strategic move aligns with ASSA ABLOY's goal of expanding its market presence, particularly in the commercial laundry sector.

ASSA ABLOY has acquired Olimpia Hardware, a prominent glass hardware brand in Latin America and the Caribbean. This acquisition marks a strategic move to enhance ASSA ABLOY's market presence in emerging markets. Olimpia reported sales of approximately 13 MUSD in 2019, with a solid EBIT margin. The transaction is expected to be accretive to EPS from the outset. This integration aligns with the growing demand for glass and aluminum products in the region, further solidifying ASSA ABLOY's market leadership.

ASSA ABLOY has launched a simplified public tender offer for the remaining 5.37% of shares of agta record at a price of 70.58 EUR per share. The offer, approved by the French Financial Market Authority, will be open from September 17 to September 30, 2020, and will be followed by the delisting of agta record shares from Euronext Paris. The board of agta record recommends shareholders to accept the offer. ASSA ABLOY plans a merger of agta record into its Swiss subsidiary within 9 to 18 months post-offer completion.