United States. Assa Abloy has signed a definitive agreement to acquire Spectrum Brands' Hardware and Home Improvement ("HHI") division for a purchase price of $4.3 billion in cash and debt-free.
Spectrum Brands' Hardware and Home Improvement ("HHI") division is a provider of security, plumbing and hardware products for builders to the North American residential segment with a diversified offering of locks, faucets and hardware products for builders.
HHI has a varied portfolio of innovative products, including proprietary SmartKey technology and electronic, smart and biometric locks. Key brands include Kwikset, Baldwin, Weiser, Pfister and National Hardware.
HHI has strong, established relationships with a variety of customers, including large home improvement centers, wholesale distributors, home builders, online retail channels, and home automation providers.
For the fiscal year ended September 2020, HHI's net sales were $1.342 billion with an adjusted EBITDA margin of about 19%.
HHI is headquartered in Lake Forest, California, with approximately 7500 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 the development of our residential business in North America. This acquisition advances our strategy to strengthen our position by adding complementary products to the core business and will further accelerate transformation. from mechanical solutions to digital solutions," says Nico Delvaux, president and CEO of Assa Abloy.
"After managing this asset over 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. Personally, I am excited to see the innovation and exciting new products that this transaction will unlock for future generations," said David M. Maura, Executive Chairman and Chief Executive Officer of Spectrum Brands Holdings Inc.
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