STOCKHOLM (Thomson Financial) - Assa Abloy AB said it is seeking to buy South Korea's digital door lock company iRevo Co. Ltd, for 54 bln won (58 mln usd) in cash and on a debt-free basis.
The founding shareholder has already agreed to sell his 33 pct stake in the company, and the acquisition is expected to be neutral to net income in 2007, Assa Abloy said.
iRevo is Korea's largest supplier of digital door locks with distribution mainly in Korea and China, and with brands including Gateman and Cytron, the two local leaders.
The iRevo Group employs more than 200 people, and is expected to reach a consolidated turnover of approximately 60 bln won (65 mln usd) in 2007. It has book equity amounting to approximately 32 bln won (34 mln usd).
The completion of the acquisition is subject to regulatory approvals and acceptance by shareholders holding at least 90 pct of the shares, and is expected to be completed within 1-2 months, Assa Abloy said.
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