TKH acquires technology leader in mission critical intercom systems

TKH Group NV ("TKH") announces that it has reached agreement on the acquisition of a controlling interest in the Commend group ("Commend"), of which the head office is located in Salzburg (Austria). Commend is a leading technology company that develops, and manufactures security and communication systems and is one of the largest providers in the field of high-end intercom systems worldwide. TKH and Commend have already been successfully cooperating for over fifteen years, whereby TKH represents Commend in the Benelux, Germany, Poland and South-East Asia.

With more than 300 employees, family owned Commend realises an annual turnover of about € 45 million. The activities of Commend will strengthen TKH’s sub-segment vision & security and will contribute to the profitability of the business segment Building Solutions.

Commend is a technology and market leader in mission critical intercom systems worldwide. The security- and communication systems of Commend are broadly applied in- and outside buildings and in critical infrastructural projects. The systems offer efficient and safe communication, which, particularly in critical situations, secures an adequate communication connection.

Alexander van der Lof, CEO of technology company TKH: "The strategic business combination between Commend and TKH strengthens our position in the field of communication technology by in-house development and manufacturing of this technology and thus reduces TKH's dependency on third parties. The leading technology of Commend has played an important role in the market positioning of TKH for many years due to the representation of Commend by TKH in a number of countries. Communication technology is one of the four core technologies of TKH, which is essential in our integrated security solutions. Especially within our defined vertical growth markets Care, Parking, Tunnel & Infra and Marine, Oil & Gas, the Commend technology as part of the total technology proposition is of great importance and will support the envisaged growth target. We are pleased that Mr. Roger Dance will continue his position as managing director so that Commend can continue it's growth under his leadership. Salzburg will remain the centre for production, R&D, as well as sales and marketing."

Roger Dance, managing director of Commend International: "The acquisition by TKH is an excellent move for Commend to continue its ambitions as international player in the field of high-end communication systems for security and safety. We see a good fit with TKH to combine our strengths and potential to accelerate growth together with the complementary technologies and market positions of TKH."

TKH will acquire 74% of the shares of Commend International GmbH (Austria), which holds the production and development activities. In addition, TKH has the option right and intention to acquire in 2015 the international sales organisations of Commend in the USA, UK, France, Spain and Italy as well as 49% of Commend Australia. TKH will increase its existing shareholding in the subsidiaries Commend Benelux BV and Schneider Intercom GmbH to 100% by acquiring an interest of 25% and 5% respectively. 

The acquisition of Commend International is expected to be finalised in January 2015. The purchase price and the EBIT-multiple are in line with TKH’s strategic acquisitions in the past. The acquisition will contribute as of the closing date to the earnings per share of TKH.

The acquisition will be financed with equity.

TKH has published a presentation with information on the acquisition on their website www.tkhgroup.com.