11 Sep 2007
ASSA ABLOY acquires majority stake in iRevo
ASSA ABLOY announced today that it has agreed to
acquire in excess of 50% in iRevo, a Seoul-listed company and
market leader in digital door locks *.
ASSA ABLOY has
reached an agreement with a number of the main shareholders,
including Mr Jae Hong Ha, the founder and CEO of iRevo, to acquire
in excess of 50% of the shares and voting rights **.
Founded in 1997,
iRevo has grown rapidly to become Korea's largest supplier of
digital door locks with distribution mainly in Korea and China. The
acquisition brings great benefits to the ASSA ABLOY group including
a market leading position in Korea and access to efficient
distribution channels in the residential sector and ability to
leverage on ASSA ABLOY's global distribution network.
The iRevo Group,
which employs more than 200 people, is expected to reach a
consolidated turnover of approximately KRW 55 Bn (USD 60 M) in
2007. The purchase price for the acquired shares will amount to
approximately KRW 23 Bn (USD 25 M). The acquisition is expected to
be slightly dilutive to EPS in 2007.
The completion of
the acquisition is subject to regulatory approvals. The transaction
is expected to be completed within one month.
For more information,
please contact:
Johan Molin, President and CEO, tel no: +46 8
506 485 42
Åke Sund, Executive Vice President Market
and Business Development,
tel: +46 8 506 485 74
*
A digital door lock is a door lock with primary use of a digital
code to open the lock. Today iRevo also have products using
proximity cards, remote control fobs and fingerprint as
identification media.
**
The previous tender offer requirements from June 25 were not
fulfilled and the acquisition was not possible to carry through
under the defined conditions.
The information contained herein may be subject to
the disclosure requirements of ASSA ABLOY AB under the Swedish
Securities Exchange and Clearing Operations Act and/or the Swedish
Financial Instruments Trading Act. This information has been
publicly communicated September 11 at 11.30 CET.
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