Well, after one large industry acquisition announced just the other day, we get another!
It has been announced today that ASSA ABLOY have acquired Trojan Hardware. The second large industry acquisition in a week. This is the statement that has been published on Business Wire:
“I am very pleased to welcome Trojan into the ASSA ABLOY Group. Trojan offers a comprehensive portfolio of window and door hardware products that in a very good way complements the ASSA ABLOY offering in the UK market”, says Johan Molin, President and CEO of ASSA ABLOY.
”Trojan is an innovative, design driven business, with a strong management team and a great track record of growth and continuous product development”, says Tzachi Wiesenfeld, Executive Vice President of ASSA ABLOY and Head of the EMEA division. “Trojan’s products will reinforce the Yale offering in the strategic residential market in the UK. I am delighted to welcome the Trojan team into ASSA ABLOY”.
Trojan was established in 1993, it is headquartered in Walsall, West Midlands and has 65 employees.
Sales for 2016 are expected to reach nearly GBP 20 million (approx. SEK 220 million) and the acquisition will be accretive to EPS from the start.
Another European purchase of a UK company
Despite Brexit concerns, this is now another acquisition of a UK business by a European company. The background of the deal I am not aware of. However, after the drop in the value of Sterling, it might be safe to assume that ASSA ABLOY will have saved a few pounds compared to if the purchase had been completed just a few months previously.
Still, Trojan have been sold and this is further proof that the UK fenestration sector has a stock of companies that remain very attractive as acquisition targets. This is high praise of Trojan, and our market as a whole.
This is why I believe that despite a rocky path over the next few years, our industry will remain strong. Despite Brexit, our industry is forecast to experience steady growth over the next five years. That said, bumps in the road will come along. It’s important that as an industry we don’t become apathetic. Price increases may come our way, but that should deter our energy to ensure our businesses continue to perform well.
The purchase of Trojan by ASSA ABLOY demonstrates that we still have many jewels in the UK fenestration crown, and the rest of the world looks at our market as still an attractive place to invest in companies and acquire companies.
I personally want to wish Trojan and all who work there good luck during this acquisition, and all the best for both companies moving forward.