Kaba’s Purchase of China-Based Company to Have Domestic Impact

TAISHAN CITY, China

Kaba, a global provider of access solutions, recently acquired China’s Wah Yuet Group, a high-growth company with annual revenues of CHF 85 million (Currency in Swiss Francs).

Located in Taishan City, Guangdong Province, Wah Yuet has a ground space of 280,000 square miles and employs nearly 4,000 people.  The firm produces a wide range of cylinder locks, keys and key blanks that are distributed mainly by American and European business partners.

Kaba Group is acquiring 80 percent of the company’s share capital from K.S. Ng, the founder and sole shareholder of Wah Yuet.

This acquisition is set to enhance Kaba’s participation in the U.S. market of security applications significantly. Kaba expects to see an annual growth of more than 10 percent. The Asia Pacific region will generate about 10 percent of Kaba’s revenue and increase its EBIT margin still further.

Wah Yuet will handle manufacturing orders that Kaba has previously given to outside companies. This could generate multiple millions of Swiss Francs each year.

It is currently expected that the acquisition of the Wah Yuet Group will be completed within the third quarter of 2006.

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