ASSA ABLOY has signed an agreement to acquire the business of Shantou Longhu Sanhe Metal Holdings Co. Ltd. in China. Sanhe Metal is a leading fire-rated and security door manufacturer in the Guangdong province in south China.
"I am very pleased that Sanhe Metal is joining the ASSA ABLOY Group. Sanhe Metal represents another important step in our strategy to grow market presence in China and other emerging markets", says Johan Molin, President and CEO of ASSA ABLOY.
"Sanhe Metal is a great addition to the ASSA ABLOY Asia Pacific division. It complements very well our existing fire-rated door product offering in China, both geographically and commercially. It will also be beneficial to our key account management in the area", says Jonas Persson, Executive Vice President of ASSA ABLOY and Head of Division Asia Pacific.
Sanhe Metal was established in 1983 and has 260 employees. The head office and factory is located in Shantou, Guangdong province.
Sales are expected to reach CNY 120 M (approx SEK 130 M) in 2012 with a good EBIT margin. The acquisition will be accretive to EPS from start.
The transaction is subject to regulatory approval and is expected to close during Q2 2012.