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dormakaba to Acquire Mesker Openings Group for $142.5 million

dormakaba, a Swiss security company specializing in doors and secure access to rooms and buildings, said it signed an agreement to acquire U.S.-based Mesker Openings Group, a commercial door and hardware company, and expects to close the transaction in 2016 upon the satisfaction of customary closing conditions.

Mesker was founded in 1864 and is based in Huntsville, Ala. It offers a diversified product portfolio for commercial, industrial and institutional uses under four brands: Mesker Door, Hollow Metal Xpress, Design Hardware, and Wood Door Xpress. The company’s five manufacturing and distribution facilities are strategically located in key regions of the United States providing significant efficiencies in delivering customizable products with very short lead times. Mesker has about 400 employees and generated turnover of about USD 67 million in 2015 (US GAAP), with an adjusted EBITDA margin close to 20%.

With the acquisition of Mesker, dormakaba will increase the breadth of its product offering in North America, including products such as manual doors and frames. It will also provide dormakaba with expanded distribution network and channels, and it will open up sales opportunities due to dormakaba’s presence in verticals such as lodging and multihousing, as well as in sales channels such as security hardware, contract hardware distribution and services.

The purchase price is USD 142.5 million, which amounts to an EBITDA multiple of 8.9x on 2016E basis. The acquisition is expected to be accretive to Group EBITDA margin as well as to EPS from day one.
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