Security products group expands presence with two acquisitions

SECURITY products group Assa Abloy has strengthened its position with two acquisitions part advised out of Birmingham.

The company, whose UK base is in Willenhall, has firstly acquired Alvechurch-based Intelligent Locking Systems, a company that develops, manufactures and installs digital combination locks for High Security environments in Government and other specialist High Security applications.

ILS will operate as part of the Chubb Locks Custodial Services (CLCS) business unit following acquisition.

The acquisition enhances CLCS’ focus on government solutions, largely due to ILS expertise in the high security and government sectors.

Mike Ralph, managing director of ILS, will stay with the business in a new role as Director – Combination Locks.

He said: “Intelligent Locking Systems has successfully operated in a specialist market since it started in the late 1980s, as evidenced by its products and customer base, however, it has been limited to the UK market.

“Following the acquisition by Assa Abloy, ILS will have a far better chance to penetrate new markets. The synergy is exceptionally good and ILS will fit perfectly in the Assa Abloy range.”

Simon Teagle, managing director of CLCS, said: “The acquisition of ILS allows us to provide a full range of mechanical and electronic combination locks to our combined customer base. Additionally, we can develop opportunities in new market sectors, both in the UK and overseas. CLCS has an established service and installation business and the acquisition further enhances this. Our aim is to continue to develop innovative products with our customers and continue to deliver exceptional levels of service.”

The second acquisition has seen the firm take over eTag Solutions, a business that provides electronic key management systems for automotive dealerships.

It has been taken on by Assa subsidiary Traka, which has created a special division to target the automotive sector more effectively.

The terms of neither deal have been disclosed.

The Transaction Services team at BDO in Birmingham carried out financial and tax due diligence for Assa Abloy during the acquisition process.

Listed in Sweden, and with worldwide operations, Assa Abloy is the largest global supplier of intelligent lock and security solutions.

Graham Penter, Financial Control at Assa, said: “BDO took a hands on approach to the Financial Due Diligence and presented a clear picture of the businesses, demonstrating how they would be measured against our KPI’s and accounting policies. Our legal advisors specifically commended the quality of the tax analysis, which was crucial in the SPA drafting and vendor negotiations.”