Sweden’s Assa Abloy to acquire Cardo for $1.6 bn

The world's largest lock maker Assa Abloy AB has offered 11.3 billion Swedish kroner (SEK), approximately $1.64 billion, for Cardo AB, a world leader in the supply of industrial doors, aiming to strengthen the company's product offering and create a strong supplier within entrance automation in the European market.

Assa Abloy has already entered into agreements with several large shareholders of Cardo, including LE Lundbergforetagen AB, to acquire around 63.6-per cent stake in the company at SEK 420 ($61) per Cardo share, the company said in a statement.

LE Lundbergforetagen, the principal shareholder in Cardo, holds 41.3-per cent stake or around 11.1 million shares in the company.

Simultaneously, Assa Abloy also launched a public offer to buy the remaining shares in Cardo at the same price, indicating an acceptance period of 4-25 February 2011 for the offer.

Stockholm-based Assa Abloy is a global leader in door locks, covering access control, identification technology, door automation, and hotel security. The $5-billion group has leading positions in Europe, North America, and Australia, and employs around 29,000 people worldwide.

Malmo, Sweden-headquartered Cardo is a leading supplier of industrial and garage doors, logistics systems, wastewater treatment systems, and process equipment for the pulp and paper industry.