ASSA ABLOY strengthens its position further in the New York market

9 Oct 1998

 
ASSA ABLOY's US operations acquire New England Lock & Hardware Co, that since the beginning of the century produces locks and locks related high security products under the brand name Segal.
 
The acquisition enforces the Medeco and Segal strong joint position in the demanding New York market and enables the group to expand into the residential market through locksmiths as well as the DIY channel. Medeco and Segal will add value to each other through their complementing products and attributes and offer high security solutions for the residential as well as for light commercial buildings.
 
New England Lock & Hardware Co is located in Norwalk, Connecticut and has approximately 30 employees. The company has a low profitability but it is anticipated to be improved through synergies with other units in the group and through substantial increased sales utilizing existing and new distribution channels. The acquisition is expected to have a positive effect on the earnings on share from 1999 and creates an insignificant goodwill amount. The sales are estimated to reach approximately $2 million this year.
 
ASSA ABLOY is the world's leading lock group with sales exceeding 8 000 MSEK. The number of employees is approx. 10 000. ASSA ABLOY develops, manufactures and markets mechanical, industrial, electromechanical and electronic locks and hotel locks. The group has market leading positions in Sweden, Finland, Norway, Denmark, Germany, France, Belgium, the Czech Republic, Romania and in the United States as well as within the segment for hotel security worldwide.
 
For further information, please contact
 
Carl-Henric Svanberg, President & CEO, tel: +46-8-698 8552 alt. +46-70-510 0551
or Göran Jansson, CFO, tel. +46-8-698 8572 alt. +46-70-748 8572
 
ASSA ABLOY AB (publ)
P.O. Box 70340, S-107 23 Stockholm
 
Tel: Int+46-8-698 85 70, Fax: Int +46-8-698 85 85
Visiting address: Klarabergsviadukten 90
 
http://www.assaabloy.se