Mexico. Dormakaba announced before the end of 2016, the acquisition of certain Mechanical Security businesses of Stanley Black & Decker for an amount of 725 million dollars in cash.
This transaction covers Stanley Commercial Hardware, which primarily encompasses North America and includes a production facility in Taiwan, as well as GMT in China.
It should be noted that Sargent and Greenleaf, a security lock supplier that is also part of Stanley Black & Decker's mechanical security business, is not included in the transaction.
Commenting on this important acquisition, Riet Cadonau, Chief Executive Officer, CEO of dormakaba commented: "This transaction builds on the merger of dormakaba, which boosted our position in the global market, and the recently completed acquisition of Mesker, which will expand our North American offering."
He also stressed that the objective of this business is to help dormakaba become the third supplier in the attractive North American market "that can offer a complete portfolio of door hardware and access control solutions to our customers."
Subject to customary closing conditions, the transaction is expected to close in the first quarter of 2017, and full operational integration is expected to last up to three years, beginning with the process of decoupling Stanley Black & Decker's acquired business and integrating back-end functions into dormakaba.
Stanley Commercial Hardware employs nearly 1,000 employees and operates with three major brands, including the "BEST" security brand, positioned as one of the most well-known and trusted brands in the market. Its wide range of mechanical products, security solutions, wireless and cloud-based electronic locks; are installed at more than 350,000 end-user sites in North America, providing Dormakaba with an attractive and stable business, among other benefits.
In addition, the acquisition will provide portfolio enhancements such as master key and hinge systems, ANSI-certified products, manufactured at Stanley's production facility in Taiwan that is part of the acquisition. With more breadth of products and additional channel relationships with geographically contracted hardware distributors and wholesalers, dormakaba will be able to exploit its new unique portfolio.
The transaction is expected to be neutral with respect to dormakaba's EBITDA margin from closing, and positive from full year 2019/2020 onwards.
