ASSA ABLOY to Acquire Kwikset, Rest of Spectrum Hardware and Home Improvement Division for $4.3B
ASSA ABLOY says Spectrum Brands’ HHI division constitutes a strategically important step in developing the company’s residential business in North America.
STOCKHOLM — ASSA ABLOY announces it has signed a definitive agreement to acquire the Hardware and Home Improvement (HHI) division of Spectrum Brands (NYSE:SPB) for $4.3 billion on a cash and debt free basis.
Spectrum Brands’ HHI division is a leading provider of security, plumbing and builders’ hardware products to the North American residential segment with a diversified product offering of locksets, faucets and builders’ hardware.
HHI has a varied portfolio of innovative products, including patented SmartKey technology and electronic, smart and biometric locks. Key brands include Kwikset, Baldwin, Weiser, Pfister and National Hardware.
Headquartered in Lake Forest, Calif. with some 7,500 employees worldwide, HHI has manufacturing facilities in the United States, Mexico, Taiwan, China and the Philippines.
For the fiscal year ending September 2020, HHI’s net sales were $1.34 billion with an adjusted EBITDA margin of around 19%.
“HHI is an excellent addition to the ASSA ABLOY Group and constitutes an important strategic step in developing our residential business in North America. This acquisition advances our strategy to strengthen our position by adding complementary products to the core business and it will further accelerate the transformation from mechanical to digital solutions,” says Nico Delvaux, president and CEO of ASSA ABLOY. “I look forward to welcoming HHI and all of its employees into the ASSA ABLOY Group.”
ASSA ABLOY says it can bring technological innovation to consumers using HHI’s access to new retail channels, such as homebuilders and DIY retail, and that HHI’s large installed base and great consumer reputation provides an excellent opportunity to grow its electromechanical and digital access solutions.
“After stewarding this asset for the past decade, the board of directors and I are confident that ASSA ABLOY is uniquely positioned to take our HHI business and team members to the next level of performance and achievement. I am personally excited to see the innovation and exciting new products that this transaction will unlock for future generations,” says David M. Maura, executive chairman and CEO of Spectrum Brands Holdings Inc.
The transaction is conditional upon regulatory approval and customary closing conditions and is expected to close during the fourth quarter of 2021. HHI will become part of ASSA ABLOY’s Opening Solutions Americas Division.
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