Assa Abloy has signed agreements to acquire Papaiz, a leading lock company, and Udinese, a leading manufacturer of hardware for sliding doors and windows in Brazil. The acquisitions will significantly increase Assa Abloy’s footprint in Brazil.
"I am very pleased that Papaiz and Udinese are joining the Assa Abloy Group. Papaiz and Udinese represent for the Group two major acquisitions in the Brazilian market. This constitutes an important next step in our strategy to grow market leadership in emerging markets," says Johan Molin, President and CEO of Assa Abloy.
"We welcome to Assa Abloy Papaiz, the most well-known Brazilian lock brand and Udinese, the leading window hardware producer in the Brazilian market. These acquisitions will significantly increase our product range in Brazil," says Thanasis Molokotos, EVP of Assa Abloy and Head of the Americas Division.
Papaiz, established in 1952, is located in Salvador, in northeastern Brazil. Udinese, established in 1966, is located in Diadema, near Sao Paulo. Together they add approximately 1,300 employees.
Combined sales are expected to approximately USD$50 million in 2016. The acquisitions will be accretive to EPS from start.
The transactions are expected to close during Q4 2015.