ASSA ABLOY acquires VHS in Turkey

Rhea-AI Summary

ASSA ABLOY has signed an agreement to acquire VHS Plastik Metal, a prominent Turkish manufacturer of window and door hardware systems. This strategic acquisition aims to enhance ASSA ABLOY's market leadership in emerging markets, particularly in Turkey. With approximately 440 employees, VHS generated sales of around MTRY 150 million in 2021. The acquisition is expected to be accretive to earnings per share from the start and is anticipated to close in Q4 2022, subject to customary closing conditions.

Positive

• Acquisition expected to enhance market presence in Turkey.
• Accretive to EPS from the beginning.
• Local manufacturing footprint provides growth opportunities.

Negative

• None.

STOCKHOLM, Sept. 1, 2022 /PRNewswire/ -- ASSA ABLOY has signed an agreement to acquire VHS Plastik Metal ("VHS"), a leading manufacturer of hardware systems for windows and doors based in Turkey.

"I am very pleased to welcome VHS into the ASSA ABLOY Group. This constitutes an important next step in our strategy to grow market leadership in emerging markets," says Nico Delvaux, President and CEO of ASSA ABLOY.

"We are very excited about the acquisition of VHS. This transaction is a step change to our existing trading business in Turkey and reinforces our long-term commitment to the local market. VHS offers a strong range of window and door hardware products that will complement our offer in Turkey.  VHS has a great team of people that I welcome to the ASSA ABLOY family and it gives us a local manufacturing footprint that offers great opportunities," says Neil Vann, Executive Vice President of ASSA ABLOY and Head of EMEIA Division.

VHS was established in 1997 and has some 440 employees. The main office and factory is located in Silivri, close to Istanbul.  

Sales for 2021 amounted to about MTRY 150 (approx. MSEK 150) with a good EBIT margin. The acquisition will be accretive to EPS from the start.

The acquisition is subject to customary closing conditions and is expected to close during the fourth quarter of 2022.

For more information, please contact:

Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, CFO and Executive Vice President, tel. no: +46 8 506 485 72 
Björn Tibell, Head of Investor Relations, tel. no: +46 70 275 67 68

About ASSA ABLOY

The ASSA ABLOY Group is the global leader in access solutions. The Group operates worldwide with 51,000 employees and sales of SEK 95 billion. The Group has leading positions in areas such as efficient door openings, trusted identities and entrance automation. ASSA ABLOY's innovations enable safe, secure and convenient access to physical and digital places. Every day, we help billions of people experience a more open world.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/assa-abloy/r/assa-abloy-acquires-vhs-in-turkey,c3624038

The following files are available for download:

https://mb.cision.com/Main/7333/3624038/1621775.pdf	Press release (PDF)
https://news.cision.com/assa-abloy/i/vhs,c3084985	VHS

View original content:https://www.prnewswire.com/news-releases/assa-abloy-acquires-vhs-in-turkey-301616135.html

SOURCE ASSA ABLOY

FAQ

What is the significance of ASSA ABLOY's acquisition of VHS Plastik Metal?

The acquisition strengthens ASSA ABLOY's market position in Turkey and complements its existing product offerings.

What financial impact is expected from the acquisition of VHS by ASSA ABLOY?

The acquisition is expected to be accretive to earnings per share from the start.

When is ASSA ABLOY expected to finalize the acquisition of VHS?

The acquisition is anticipated to close in the fourth quarter of 2022, pending customary closing conditions.

What are the sales figures for VHS prior to the acquisition?

VHS reported sales of approximately MTRY 150 million in 2021.

How many employees does VHS have?

VHS has about 440 employees.