ASSA ABLOY to Acquire Hardware and Home Improvement Division of Spectrum BrandsSeptember 9th, 2021 by Editor
ASSA ABLOY recently announced that it has signed a definitive agreement to acquire the Hardware and Home Improvement (HHI) division of Spectrum Brands for a purchase price of MUSD 4,300 on a cash and debt-free basis.
Spectrum Brands’ Hardware and Home Improvement division provides 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 portfolio that includes patented SmartKey technology and electronic, smart and biometric locks. Key brands include Kwikset, Baldwin, Weiser, Pfister and National Hardware. HHI is headquartered in Lake Forest, Calif., with 7,500 employees worldwide and has manufacturing facilities in the United States, Mexico, Taiwan, China, and the Philippines.
“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.”
The ASSA ABLOY press release states that HHI constitutes a strategically important step in developing ASSA ABLOY’s residential business in North America, supplementing the latter’s reputation for innovation on the commercial side. HHI brings a knowledge of the residential business and adds complementary products, technology, and solutions.
“The acquisition of HHI brings strong, well-known brands and high-quality, innovative products to the residential portfolio for ASSA ABLOY in North America, complementing our current business with a passionate and experienced team,” says Lucas Boselli, executive vice president of ASSA ABLOY and head of the Americas Division. “Our technology platform and innovation focus supplements HHI’s current offerings, and provides an exciting opportunity for us to deliver superior value to consumers.”
HHI has a track record of innovation, especially within SmartKey technology, which ASSA ABLOY says will complement its offering. ASSA ABLOY expects strong synergies, the largest components being our increased product offering, advances in technology, distribution, and procurement. The EBIT synergies are expected to reach around MUSD 100 in 2025.
“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.
HHI will become part of the Opening Solutions Americas Division.