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KABA compra la mayor fábrica de cerraduras del mundoKABA buys the largest manufacturer of locks in the world
The KABA group has reached an agreement to deal with Chinese company Wah Yuet, the largest manufacturer of locks and keys to the world, through the acquisition of 80% of the shares of k. S. Ng, its founder and sole shareholder. The operation, closed after months of intensive negotiations and on the cost of which the parties involved have agreed to maintain total confidentiality, has been classified as "strategic move" by representatives of KABA, and by its significance, will have great impact on the world market for security systems.
The acquisition of the modern factory (equipped with more than 280,000 m2 in the city of Taishan, Guangdong Province, employing some 4,000 people) will strengthen the competitiveness of KABA while Wah Yuet focus orders that so far the group performed at other companies and posed several million euros per year. With this new situation is expected, on the one hand, further increase the profit margin net of exploitation (EBIT) and net cash flow over the costs of financing the purchase, and, on the other hand, accelerate the growth of the cash flows of the group.
Taking into account that, during the 2005-2006 fiscal year, up the past March 31, Wah Yuet generated income is close to the 55 million euros, and significant benefits, the first consequences of the closure of the operation will affect directly to KABAthat it will strengthen as well its profits and dividends from the shares of the Group since the year following the acquisition. Also expected to achieve future growth of more than 10% a year and, what is most important, this operation, according to Magin Guardiola, CEO of KABA in Spain, "internationally we do with the key that opens the Asian market." "As recently said the director of the holding company, Ulrich Graf, with Wah Yuet achieve the necessary basis for our future and final expansion in the region".
In this regard, we must take into account that some of the products it manufactures Wah Yuet complete the current catalogue of KABA on low and competitive price, and, therefore, will help to strengthen its position in the Asian marketswhere the price is presented as one of the main advantages to compete. The acquisition of this Chinese factory - along with the announced purchase of the American Saflok and La Gard to Masco Corporation - will strengthen the presence of the KABA group in the American market of security for the residential sector, because the Chinese manufacturerIt distributes its products in United States thanks to agreements with various companies in this country.
