Assa Abloy AB, the world’s largest lockmaker, said it’s seeking to double the importance of its emerging market operation by making acquisitions.
Emerging markets should account for 50 percent of sales by 2025, up from one-quarter currently, Stockholm-based Assa Abloy said today.
The company will continue its “strategy of proactive acquisitions” in Asia, Africa, the Middle East, Eastern Europe and South America, Chief Executive Officer Johan Molin said today in a statement. He reiterated the target of growing 10 percent annually via internal and external expansion.
Assa Abloy has added 100 new companies since Molin took the helm in 2005. Its most recent purchase is Carrollton, Texas-based 4Front in December. Annual sales have increased 84 percent to 46 billion kronor ($7 billion) under the current CEO’s tenure, the company said.
“The foundation for Assa Abloy’s rapid acquisitions expansion has been the group’s ability to identify and build good relationships with potential acquisitions, effectively acquire them, and successfully integrate them fast,” Molin said. “What is even more exciting is that virtually all acquisitions have developed very well.”
Assa Abloy added 11 new companies in the first nine months of last year, compared with 18 in 2011. The company has 10 percent to 15 percent of the global lock market with the biggest competitors being U.S. company Stanley Black & Decker Inc. and Ingersoll-Rand Plc of Ireland.