06.20.23
ASSA ABLOY has completed the acquisition of Spectrum Brands’ Hardware and Home Improvement division (HHI) and the divestment of Emtek and the Smart Residential business in the U.S. and Canada to Fortune Brands.
"HHI is an excellent addition to ASSA ABLOY, complementing our existing business in terms of product offering and geographic scope, and I am delighted to welcome HHI and all its employees to ASSA ABLOY,” says Nico Delvaux, president and CEO of ASSA ABLOY. “I am also pleased that employees and customers of our divested businesses will be in good hands, and I wish them future success.”
"I’m excited to welcome HHI to Opening Solutions Americas. This acquisition opens new opportunities for our residential business in the U.S. and Canada, bringing strong, well-known brands and high-quality, innovative products into our portfolio,” says Lucas Boselli, EVP of ASSA ABLOY and head of the Americas Division.
HHI was consolidated into ASSA ABLOY as of today, June 20, 2023.
Emtek and the Smart Residential business in the U.S. and Canada divested to Fortune Brands represented sales of about $400 million in 2022. The selling price for the divested business is $800 million on a cash and debt free basis. The divestiture was completed today, June 20, 2023.
The preliminary divestment result, net of exit costs and before taxes, is estimated to be about $300 million.
"HHI is an excellent addition to ASSA ABLOY, complementing our existing business in terms of product offering and geographic scope, and I am delighted to welcome HHI and all its employees to ASSA ABLOY,” says Nico Delvaux, president and CEO of ASSA ABLOY. “I am also pleased that employees and customers of our divested businesses will be in good hands, and I wish them future success.”
"I’m excited to welcome HHI to Opening Solutions Americas. This acquisition opens new opportunities for our residential business in the U.S. and Canada, bringing strong, well-known brands and high-quality, innovative products into our portfolio,” says Lucas Boselli, EVP of ASSA ABLOY and head of the Americas Division.
Financial Effects on ASSA ABLOY
For the fiscal year ending September 2022, HHI’s net sales were $1,652 million with adjusted EBITDA margin of 15.6%. The total consideration for the acquisition of HHI amounts to $4,300 million on a cash and debt free basis. The EBIT synergies are expected to reach around $100 million within a five-year period. The acquisition is expected to be initially dilutive to the operating margin and EPS.HHI was consolidated into ASSA ABLOY as of today, June 20, 2023.
Emtek and the Smart Residential business in the U.S. and Canada divested to Fortune Brands represented sales of about $400 million in 2022. The selling price for the divested business is $800 million on a cash and debt free basis. The divestiture was completed today, June 20, 2023.
The preliminary divestment result, net of exit costs and before taxes, is estimated to be about $300 million.