Somfy completes agreement with Brazilian company Garen Automaçao

Press Release

Somfy completes agreement with Brazilian company
Garen Automaçao

As Somfy pursues its strategy of external growth and development in fast growing countries, the company has finalised the agreement announced last February with the shareholders of Brazil-based Garen Automaçao.

Under the terms of the agreement signed between the shareholders of Garen Automaçao and Somfy, a new company is incorporated to manage the door and gate operations of Garen. This new company employs some 350 people and has a fully integrated production line, from component manufacture to motor assembly.

The agreement allows for Somfy to ultimately take full control of Garen Automaçao. Initially, it provides for a subscription to convertible bonds against an investment in the order of 14 million Euros. Meanwhile Somfy will attend the bondholders meeting and will be represented on the board, thereby becoming an active partner in the business helping to drive further strong growth.

Garen Automaçao is the leader in South America for door and gate controls commanding a 45% market share in Brazil. The company produces approximately 400,000 motors a year, selling 80% of them in Brazil with the remainder sold across the rest of South America.

This partnership will accelerate the distribution in South America of all products under the Somfy brand for security, energy saving and home automation.

12 May 2011

Company profile

Somfy is organised into two separate branches: Somfy Activities is dedicated to the business of automating openings and closures in residential and commercial buildings; Somfy Participations is dedicated to investing and participating in industrial companies from other sectors.

Contacts

Somfy: Jean-Michel Jaud (Director of Communications) - Tel: 00 33 450 967 065
Shan: Arnaud Monnin - Tel: 00 33 144 505 177

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