Switzerland-based Kaba Holdings AG has hiked its stake in its Indian joint venture Dorset Kaba Security Systems Pvt Ltd to 74 per cent by acquiring an additional 25 per cent stake for an undisclosed amount. Both the companies signed the agreement in June this year which got completed last month.
As part of the deal, Dorset Kaba will take over three more businesses of Dorset Group including Mars Industries Pvt Ltd, Dorset India Pvt Ltd and Modtech Industries on a slump sale basis.
Post this, Kaba will have three production sites and four regional offices in India serving a broad distribution network. This will help the company boost its sale in India.
"We now have direct access to a distribution network of more than 1,800 retailers and distribution partners. After acquisitions in Colombia, China and Brazil, we are extending our reach in a fourth emerging market, in line with our defined acquisition strategy,” said Riet Cadonau, CEO Kaba Group.
Kaba formed a JV with Dorset Group in 2007 and acquired 49 per cent stake. Currently, Dorset Kaba employs around 1,000 people and achieves annual sales of CHF 22 million (around Rs 150 crore).
The JV operates in two product areas in Indian market—builder hardware and security systems. In the builder section, the main products are lock sets, mortise locks, lever handles as well as door closer while in the security systems, it sells high-security cylinders, physical access systems and tripod barriers.
Its clientele portfolio includes companies like Hyatt Group, Taj Hotels, Max Healthcare, DLF and EMAAR MGF.
J. Sagar Associates (JSA) advised Kaba Holding AG on the deal while Luthra & Luthra Law Offices advised Dorset Group.
Kaba Holdings AG provides access control solutions for buildings, facilities and sites, and enterprise data collection systems worldwide.
In 2010, Kaba acquired additional 15 per cent stake in Greater Noida-based Minda Silca Engineering Ltd from Minda Corporation Ltd for Rs 3.5 crore.
New Delhi-based Dorset Group was established in 1995 and is engaged in manufacturing and supplying architectural hardware systems.
(Edited by Joby Puthuparampil Johnson)