Net Financial Impacts for ASSA ABLOY from the Cardo Deal and Accelerated Program for Efficiency Improvements

The divestments of Cardo Flow Solutions and Lorentzen & Wettre will soon be successfully finalized by ASSA ABLOY. The net gain on the sale is estimated to amount to SEK 430 million (USD $63 million).

The acquisition and integration of Crawford (the part of Cardo which is being consolidated into ASSA ABLOY) is performing better than expected and the company shows both growth and good profitability. Identified synergies also will exceed previous estimates. The cost for implementing the efficiency programs will therefore be somewhat higher than previously communicated and amount to approximately SEK 380 million.

In addition, a new analysis of the production structure in the rest of the ASSA ABLOY-Group has been initiated and further potential for efficiency improvements has been identified. The current uncertain economic outlook also makes it even more important to accelerate the efficiency programs on the mature markets. The cost for the implementation is estimated to SEK 950 million.

Initial estimates for the total Group show a need for closing or reshaping 17 production units and two administrative units. The total cost for the implementation for both Crawford and the rest of the production structure is thereby estimated to SEK 1,330 million.