The New $2 Billion Access Giant: dorma+kaba

By Brian Rhodes, Published May 01, 2015, 12:00am EDT

The plan to merge two second-tier door hardware and access control companies may give birth to a new giant. Europe-based Dorma and Kaba plan to join forces and instantly challenge the scope and depth of the biggest incumbents in the market.

What does this announcement mean for the global locks and access market? We analyze the deal in this note.

New ****** *****?

*** *** ******* **** be ****** ****** "*****+****", evidently ***** ***** *** with ** ******.

** *********** ************ *** *** deal, ***** ******** *** the ****** ********* ** listed **** $* ******* USD. **** ****** *** newly ****** '*****+****' ***** as *** #* ******* grossing **** ******** *** physical ****** ******* ************ worldwide.

Financial **********

*** ******** ******* ** being ****** ** ******** under ** ******* ** ~$4 ******* ***, ***** on *** ********** ********* being ****** ** **-*** EBITDA.

****'* *** ** ********** high *********, *******, ** reflects *** *** ****** rate ******* *** **** companies ************ ** ***** in **** **-**** *****:

******, **** ***** *******, the ******** ******* ** only ********* ****** ****** growth ** *** *-*% range.

************, *** ********* *** ******* the **** ****** ******* (~1 ******* *****) *** gross ******* ** *** low ** *** ***.

Company ********

**** ********* *** **** established ** *** ******, with ****** ************* *****-************* *** *********, ******** more **** * ******* in ******** ****. ** terms ** *** ***** American ******, ***** ** a ******** '********' ******** **** ** ******* ******** ********* ****** **** *****.

**** ** * ********* of ***** ******** *****:

** *******, *** ****** focus ** *** ********* have ********:

  • ****: **** * ****** dealer *******, ****'* ********* are ********* **** ** maintenance/replacement ******** ***** ** as ******** ** ** existing ********.
  • *****: ** ******** ** the *********** *** *****-****** focus ** ****, ***** has **** ********** ********** in *** *** ************ and ******** ******** *******.

*** ******** ******* ****** to **** ******* ******** to ********* ***** ** hardware *** ****** ******* buyers.

*********

******** **** ********* *** more ******** ** ****** seeking ***-**-*** *********. *** example, ***** ***** *** been **** ** ********** access, **** *** ********, recently ********* ********* ************ *******(****** *******) *** *** (electrified ***** *** ***********).

** *** ****-*** ************* hardware *** ******* ******** market, ***** **** ******** and ******-***** ******* ** Kaba's **** *********** ******** designs.

*** ***** ** *** product ********* *********** ***** a '*****+****' ****** **** be **** ** *** on **** ** *** same ******** **** ********** were **** ******* *** Assa ** ******** ******.

********

*******, *** **** **** not ********* *******. ** contrast ** **** *** Allegion, *** ******** '*****+****' group **** ***** **** a **** ******* **** of *&* **** *******. In *** ******** ******** market, ************ ******** ** ************* writing *** **************** *** ** *** primary ******* ** ******* business.

Market ******

************, **** *** ******** dealers **** *********** ******** against **** **** *****. This ****** ***** ****** the ******** ** ******* big ******.

***** ***** ********* ******* have ********** **** ****** regional ***** ********* ************, both ***** *** **** are **** ******* **** opening *** *******. *** merger ***** *********** *** propagation ** * ****** sales ******* *** **** companies **** **** ***** achieve **********.

Comments (1)

The new company will be called simply "dorma+kaba", evidently lower cased and with no spaces.

Not impressed with the new behemoth's first decision, since dorma+kaba.com is not a legal domain name and the "+" symbol may cause search engine confusion.

And at the same time doorknoba.com is unregistered.

Nice article though!

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