Five minutes with Riet Cadonau, dorma+kaba Holding
Riet Cadonau, CEO and president of dorma+kaba Holding AG talks about the merger of Dorma and Kaba for security and access solutions
1. Can you provide me some details on the merger and how it will benefit both of your portfolios and the market?
The merger of the two businesses of Dorma and Kaba to form dorma+kaba, announced at the end of April 2015, became effective by closing on 1 September 2015.
dorma+kaba Group thus becomes one of the top three companies in the world for security and access solutions, with total sales of more than $2.2bn (EUR2bn) and more than 16,000 employees in around 50 countries.
Customers and partners will benefit from a complementary product portfolio, geographical presence, combined strength across the entire value chain, and a global service organization.
2. What is the value of the merger? Have you made any kind of investment from your side?
Following Kaba shareholder approval of the merger with the Dorma Group at the Extraordinary General Meeting on 22 May 2015, the former owner of Dorma, the Mankel/Brecht-Bergen family, subscribed to the corresponding shares from a share capital increase, and became a shareholder with a participation of 9.06%.
There was no other monetary transaction involved.
The combination of Dorma and Kaba took place on the level below the holding company, which is dorma+kaba Holding AG, the listed company – the holding company contributed all its assets and liabilities into the former Dorma Holding company and received as a consideration a participation of 52.5% in this entity.
The remaining 47.5% are still with the former owners of Dorma.
3. What will be the strategy for 2016? Any marketing procedures that you are going to adopt?
We are currently reviewing our strategy. At this point in time, I cannot give any specifics on this yet.
4. How has been the market for you in 2015? Any special reasons behind the merger?
Due to different economic situation in the respective world regions, the market has been everything from challenging to prosperous.
As for the reason to merge: the industrial logic behind the decision was and continues to be strong and the industrial fit between the two companies is very good.
Together, we have new profitable growth opportunities that would not present themselves to us as individual companies, and therefore we will be able to address market and client needs even better.
5. What is the first step that the company will be taking after the merger?
With closing of the merger transaction on 1 September 2015, a dedicated Integration Management Office (IMO) has taken up its work with designated employees, and the post-merger integration process was started up under the motto “the best for the new”.
Since then, we have continuously worked to take all major organizational and personnel-related decisions and to define target structures as well as core processes.
In addition, core post-merger integration projects as well as synergies had to be identified.
We are well on schedule to migrate existing organizational structures to target structures by 1 July 2016 and to operationally to start our first full financial year as one company.
All this has been set up to support the financial targets which we have announced as part of the merger and which should be in place at full run rate in fiscal year 2018/2019.
6. Any plans of expansion in the future?
Both companies had a strong balance sheet already in the past to support growth opportunities. After the merger we have an even stronger balance sheet.
We will continue to look out for business opportunities that fit our strategy.
7. Do you have fire safety doors? Do you have any plans of working towards it?
dorma+kaba’s product Talos Revolving doors, for instance, can optionally be equipped with a wide range of features to meet customer requirements: emergency exit function, integration of a manual or motorized night-time closure and much more.
By choosing the relevant features, Talos revolving doors can be made to comply with different security standards, such as fire protection.