ALPHA Corporation and Alpha Industry QuerEtaro, S.A. De C.V. completed the acquisition of Suzhou FAB Vehicle Security Solutions Co., Ltd. and car lock business in Czech Republic, Mexico, Germany and Switzerland from HID Global Switzerland S.A., Assa Abloy Deutschland Gmbh, ASSA ABLOY Czech & Slovakia s. r. o. and Alpha Industry QuerEtaro, S.A. De C.V.
September 29, 2016
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ALPHA Corporation (TSE:3434) and Alpha Industry QuerEtaro, S.A. De C.V. entered into framework purchase agreement to acquire Suzhou FAB Vehicle Security Solutions Co., Ltd. and car lock business in Czech Republic, Mexico, Germany and Switzerland from HID Global Switzerland S.A., Assa Abloy Deutschland Gmbh, ASSA ABLOY Czech & Slovakia s. r. o. and Alpha Industry QuerEtaro, S.A. De C.V. for €17 million on March 2, 2016. The consideration is subject to adjustment based on factors including the net asset value of the business at the time of closing. The assets to be acquired through the acquisition include manufacturing and assembly facilities in Czech, Mexico and China. The consideration will be financed from the cash in hand as well as borrowing. Alpha intends to maintain the current management and operations of the business in each country.
For the year ended on March 31, 2015, the business reported revenue of ¥48613 (€392.63) million, operating profit of ¥1651 (€13.33) million, net income of ¥2000 (€16.15) million. The transaction is subject to demerger of Czech car lock business from Czech subsidiary of Assa Abloy and regulatory approval. The transaction will have a positive effect on ASSA ABLOY´s operating margin and be neutral to EPS. ALPHA expects that there will be an impact of ¥120 (€0.97) million to the current period’s consolidated business results due to the various outlays related to the acquisition. The deal is expected to close at the end of May 2016. The acquisition was expected to complete by May 31, 2016, but due to delay in obtaining the permits necessary for the post-acquisition operations of the Car Lock Business in certain countries, the deal completion has been postponed. As of May 24, 2016, the expected closing date for ASSA has been changed to June 2016 from May 31, 2016.
Marc Kutschera, Vikas Sehgal and George Galanopoulos of Rothschild acted as financial advisor to ASSA ABLOY AB. Nick Wall, Jarrod Woodward, Yuki Ojima, Prokop Verner,Ondrej Kramolis, Chris Zhu, Hao Tao, Alexander Wuepper and Francois Renard of Allen & Overy acted as legal advisors to ALPHA Corporation. KPMG Czech Republic acted as accountant to ALPHA Corporation. The currency conversion has been done from www.oanda.com as of March 3, 2016.
ALPHA Corporation (TSE:3434) and Alpha Industry QuerEtaro, S.A. De C.V. completed the acquisition of Suzhou FAB Vehicle Security Solutions Co., Ltd. and car lock business in Czech Republic, Mexico, Germany and Switzerland from HID Global Switzerland S.A., Assa Abloy Deutschland Gmbh, ASSA ABLOY Czech & Slovakia s. r. o. and Alpha Industry QuerEtaro, S.A. De C.V. on September 30, 2016.
ALPHA Corporation is a Japan-based company mainly engaged in the manufacture and sale of keys and locks for automotive, housings and industrial equipment, as well as the provision of related products and services. The Company has six business and region segments. The Automotive Parts (Japan, North America, Asia, Europe ) segment is engaged in the manufacture and sale of steering locks, key cylinders, keyless entries, intelligent key systems and other key set products, as well as outside and inside door handles. The Company operates the business in Japan, the United States, Mexico, Thailand, China, India, Indonesia, Czech Republic, Slovakia and France. The Security Equipment (Japan, overseas) segment is engaged in the manufacture and sale of electric locks, door locks and other housing locks, industrial equipment locks, coin lockers for stations, pools and gymnasiums, delivery boxes for apartments and detached houses. The Company operates the business in Japan, Thailand and China.
ALPHA Corporation and Alpha Industry QuerEtaro, S.A. De C.V. completed the acquisition of Suzhou FAB Vehicle Security Solutions Co., Ltd. and car lock business in Czech Republic, Mexico, Germany and Switzerland from HID Global Switzerland S.A., Assa Abloy Deutschland Gmbh, ASSA ABLOY Czech & Slovakia s. r. o. and Alpha Industry QuerEtaro, S.A. De C.V.
ALPHA CORPORATION 
