First: Mega deal in the security industry
The Swiss Kaba Holding AG, based in Rümlang, and the German family-owned company Dorma Holding want to merge. The result would be the dorma+kaba group. A corresponding transaction agreement was signed yesterday evening. The deal still has to be approved by shareholders.
For Ulrich Graf, Chairman of the Board of Directors of Kaba, it is clear: "By combining the two strong brands Dorma and Kaba a leading company in the security industry is created. The shareholders stand for a long-term orientation - this is also a real competitive advantage in our dynamic industry." Dorma offers access solutions and is one of the market leaders in automatic, glass fittings and door locking technology. The same applies to Kaba in the field of access control, store floor data collection and key systems.
The result is the global top 3 in the security and access league.
With pro forma sales of more than 2 billion Swiss francs, around 16,000 employees and locations in 53 countries, the two merged companies with the new joint holding company move into the global top 3 of the highly fragmented market for security and access solutions. Hans Gummert, Chairman of the Supervisory Board of Dorma: "With the merger of our globally established companies, we are significantly strengthening our market position. Not only do we share over a hundred years of entrepreneurial tradition and the same values, but we also largely agree on our strategies."
Dorma and Kaba are an ideal match
The technological expertise, the products and the distribution channels of Dorma and Kaba would ideally complement each other, it is said. The joint distribution and service network, cross-selling and positioning as a "one-stop store" for security and access to buildings will open up considerable additional growth potential for the combined company. Thomas P. Wagner, CEO of Dorma: "Together with Kaba, we are taking a big step forward. We are expanding our product range, strengthening our global presence and increasing our innovative power. This will allow us to take advantage of opportunities offered by megatrends such as urbanization and digitalization faster and better."
dorma+kaba will have production facilities in all major markets of the industry and will accelerate its global expansion with increased presence especially in Europe, America and Asia-Pacific, it is emphasized.
Substantial increase in value
Riet Cadonau, CEO of Kaba: "Dorma and Kaba are ideal partners in every respect and a convincing strategic fit. With the planned merger, we are creating additional opportunities for sustainable profitable growth - with corresponding added value for our customers, partners, employees and shareholders."
Over the next four years, the new duo is targeting sales growth of 6 to 7% (in local currencies) per year. Due to higher purchasing volumes, optimized infrastructure costs as well as efficiency gains, cost synergies of CHF 60-70 million per year are expected to be fully effective in the fourth year after the merger, according to the statement. One-time implementation costs are estimated to total the full cost synergies for one year.
Who will be what in the new group?
Ulrich Graf, the current Chairman of Kaba, will chair the Board of Directors of the new group. CEO is to be Riet Cadonau, the current CEO of Kaba. The designated CFO is Bernd Brinker, CFO of Dorma. The management bodies of the group are to be as balanced as possible, according to those responsible.
The locations in both Rümlang and Ennepetal, Germany, will play an important role in the joint company. Rümlang will be the corporate headquarters of dorma+kaba Holding, while Ennepetal, as the headquarters of the future "Access Solutions DACH" division, will be responsible for business in the German-speaking countries.
The merger also entails a merger of jobs: there is talk of a total reduction of around 5% of the workforce, spread over four years.
More information about the Transaction structure and valuation as well as the shareholding relationships between Kaba and the Dorma family of owners are here available.
The mega deal still has to be approved by shareholders at a Extraordinary General Meeting be approved by Kaba.
The CFO of the new holding company will be Bernd Brinker, currently CFO of Dorma. CEO of the new holding company will be Riet Cadonau, current CEO of Kaba.
