STOCKHOLM, Sweden, April 08, 2004 (PRIMEZONE) -- Gunnebo acquires Elkosta and its businesses in Germany and England. The purchase strengthens Gunnebo's position in outdoor perimeter protection.
Gunnebo has today acquired the German security company Elkosta GmbH from euromicron AG. Founded in 1951, Elkosta now has an annual turnover of some MEUR 24 and 155 employees in Germany and England. Its product range consists mainly of security products for preventing unauthorised access, such as sliding and hinged portals and gates, road barriers, hydraulic bollards, fence-posts, and barriers, which are manufactured at its Salzgitter factory.
Elkosta, whose head office and factory are located in Salzgitter just outside Hannover, Germany, specialises in the development, manufacturing and sales of outdoor perimeter protection, mainly to municipalities, the defence sector and public institutions. Some MEUR 11 of Elkosta's turnover (45%) is in Germany; MEUR 7, or 30%, is in England through the wholly owned English subsidiary, which is located in Taunton, near Bristol; and MEUR 6, or 25%, goes to other markets.
Elkosta's products for external access control consist mainly of sliding and hinged portals and gates (20%), road-barriers (17%), hydraulic bollards (13%), fence-posts (12%), barriers (11%) and other security-products (23%).
Gunnebo Perimeter Protection has two companies in Salzkotten in Germany: Gunnebo Wego GmbH, which develops, manufactures, sells and installs products for outdoor perimeter protection, and Werra Tor und Zaun GmbH, for the sale of complete systems for outdoor perimeter protection. The companies currently have a combined annual turnover of approximately MEUR 25, of which some MEUR 21 is on the German market. At present, Gunnebo Perimeter Protection has very limited sales in England.
Consolidation of outdoor perimeter protection market
The acquisition of Elkosta is part of the Gunnebo Group's strategy of taking an active role via acquisitions in the consolidation of the outdoor perimeter protection industry in Europe.
"The acquisition of Elkosta is part of the strategic plan we established last autumn for Gunnebo Perimeter Protection with the object of restoring the business area's profitability," says Bjarne Holmqvist, Gunnebo's President and CEO. "We believe it will generate considerable synergies, especially for Gunnebo Perimeter Protection and Elkosta, and provide large potential to broaden the market for Elkosta's products."
The acquisition of Elkosta is expected to have only a marginal effect on Gunnebo's earnings per share for the current financial year and it should make a positive contribution as of 2005. The full effect on the result will be achieved in two to three years' time. The acquisition gives rise to goodwill of some MEUR 9.
"The acquisition of Elkosta will significantly strengthen our position on the market for outdoor perimeter protection in Germany," says Philip Mozes, Divisional Manager of Gunnebo Perimeter Protection. "It will also give us a strong platform from which to grow on the UK market as well as strengthening our position through Elkosta's and our own companies and agents on other markets in Europe and beyond."
GUNNEBO AB (publ) Information
Gunnebo is an international fast growing security group with 110 companies located in 32 countries. The Group has sales to a further hundred markets via agents and distributors. Annual turnover amounts to some MEUR 800. Gunnebo's security products mainly include fire and burglar resistant safes, security products for banks and cash handling, electronic security systems, fire protection, entrance control and access control, alarm centres and indoor and outdoor perimeter protection. Gunnebo has at its disposal some of the world's leading brand names in security: Chubbsafes, Fichet-Bauche, Rosengrens, Ritzenthaler, Garny, Leicher, Wego, Werra and Elkosta.
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http://www.waymaker.net/bitonline/2004/04/08/20040407BIT20040/wkr0004.pdf Gunenbo acqires German Elkosta