Gunnebo invests in South America through increased ownership in
Brazilian joint-venture
 
The Gunnebo Security Group has increased its ownership from 50 to 80 per
cent in the Brazilian joint-venture company Gateway Security SA, which
therewith becomes a subsidiary. The company will be Gunnebo's platform
for growth in South America.
 
Gunnebo foresees strong growth in the South American security market in
the years to come. Today Gunnebo is a leading provider of security
solutions to the Brazilian retail sector. The business comprises a solid
platform from which to grow the Group's complete security offering in
Brazil as well as in other growing South American markets.
 
Gunnebo has 90 employees in Brazil and an annual turnover of MEUR 14.
During the past years, the business has shown strong and very profitable
growth. The investment sum amounts to some MSEK 80 and will be paid in
cash. The new shareholder agreement includes an adjusted profit sharing
and an option for Gunnebo to acquire the remaining shares.
 
“To invest in growth markets like Brazil is very much in line with the
Group's overall strategy to shift the point of gravity of the Group's
business outside of Europe,” says Gunnebo's President and CEO, Per
Borgvall. “Five years ago, sales outside of Europe accounted for just
over 10 per cent of Group sales, while at the end of the third quarter
2011 that figure had risen to 32 per cent. Our ambition is to continue
this shift, which will be done through market investments in parts of
the world with strong growth within our core business.”
 
“Bank and retail are two sectors with strong growth in Brazil as well as
in many other South American markets,” says Rubens Bulgarelli Filho,
Manager of Gunnebo's operations in Brazil. “The fact that Brazil is to
host the football World Cup in 2014 and the Olympic games in 2016 means
that the market for entrance control will also see good growth during
the years to come. Now when we also start to market and sell Gunnebo's
full portfolio of solutions and services, I see good opportunities for
increased strong and profitable growth in Brazil as well as in other
South American markets.”
 
GUNNEBO AB (publ)
Group Communications
 
Tomas Wängberg, SVP Developing Businesses Gunnebo AB, tel. +46 10 2095
030, or
Karin Wallström, Communication Manager & IR Director, Gunnebo AB, tel.
46 10 209 5026, mobile: 46 708 283339 or e-mail
This email address is being protected from spambots. You need JavaScript enabled to view it. (This email address is being protected from spambots. You need JavaScript enabled to view it.)
 
Gunnebo discloses the information provided herein pursuant to the
Swedish Securities Markets Act and/or the Financial Instruments Trading
Act. The information was submitted for publication at 09.16 CET on
November 2, 2011.