The New $2 Billion Access Giant: dorma+kaba
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 ****** *****?
*** *** ******* **** ** ****** simply "*****+****", ********* ***** ***** *** with ** ******.
** *********** ************ *** *** ****, ***** ******** *** *** ****** companies ** ****** **** $* ******* USD. **** ****** *** ***** ****** 'dorma+kaba' ***** ** *** #* ******* grossing **** ******** *** ******** ****** control ************ *********.
Financial **********
*** ******** ******* ** ***** ****** at ******** ***** ** ******* ** ~$4 ******* ***, ***** ** *** individual ********* ***** ****** ** **-*** EBITDA.
****'* *** ** ********** **** *********, however, ** ******** *** *** ****** rate ******* *** **** ********* ************ as ***** ** **** **-**** *****:
******, **** ***** *******, *** ******** company ** **** ********* ****** ****** growth ** *** *-*% *****.
************, *** ********* *** ******* *** **** annual ******* (~* ******* *****) *** gross ******* ** *** *** ** mid ***.
Company ********
**** ********* *** **** *********** ** the ******, **** ****** ************* *****-************* *** *********, ******** **** **** a ******* ** ******** ****. ** terms ** *** ***** ******** ******, Dorma ** * ******** '********' ******** **** ** ******* ******** ********* ****** **** *****.
**** ** * ********* ** ***** regional *****:
** *******, *** ****** ***** ** the ********* **** ********:
- ****: **** * ****** ****** *******, Kaba's ********* *** ********* **** ** maintenance/replacement ******** ***** ** ** ******** to ** ******** ********.
- *****: ** ******** ** *** *********** and *****-****** ***** ** ****, ***** has **** ********** ********** ** *** new ************ *** ******** ******** *******.
*** ******** ******* ****** ** **** broader ******** ** ********* ***** ** hardware *** ****** ******* ******.
*********
******** **** ********* *** **** ******** to ****** ******* ***-**-*** *********. *** example, ***** ***** *** **** **** in ********** ******, **** *** ********, recently ********* ********* ************ *******(****** *******) *** *** (*********** ***** and ***********).
** *** ****-*** ************* ******** *** special ******** ******, ***** **** ******** and ******-***** ******* ** ****'* **** utilitarian ******** *******.
*** ***** ** *** ******* ********* essentially ***** * '*****+****' ****** **** be **** ** *** ** **** of *** **** ******** **** ********** were **** ******* *** **** ** Allegion ******.
********
*******, *** **** **** *** ********* success. ** ******** ** **** *** Allegion, *** ******** '*****+****' ***** **** still **** * **** ******* **** of *&* **** *******. ** *** contract ******** ******, ************ ******** ** ************* ******* *** specifications** *** ** *** ******* ******* of ******* ********.
Market ******
************, **** *** ******** ******* **** essentially ******** ******* **** **** *****. This ****** ***** ****** *** ******** of ******* *** ******.
***** ***** ********* ******* **** ********** from ****** ******** ***** ********* ************, both ***** *** **** *** **** liberal **** ******* *** *******. *** merger ***** *********** *** *********** ** a ****** ***** ******* *** **** companies **** **** ***** ******* **********.