ASSA ABLOY to acquire HHI division of Spectrum Brands, includes Kwikset

STOCKHOLM—ASSA ABLOY has signed a definitive agreement to acquire the Hardware and Home Improvement (HHI) division of Spectrum Brands for a purchase price of $4.3 billion on a cash- and debt-free basis.

The transaction is conditional upon regulatory approval and customary closing conditions and is expected to close during the fourth quarter of 2021.

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.

HHI has strong, established relationships with a variety of customers including large home improvement centers, wholesale distributors, homebuilders, online retail channels, and home automation providers.

For the fiscal year ending September 2020, HHI's net sales were $1.34 billion with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of around 19 percent.

HHI is headquartered in Lake Forest, Calif., with some 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,” said Nico Delvaux, President and CEO of ASSA ABLOY. “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. I look forward to welcoming HHI and all of its employees into the ASSA ABLOY Group."

"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," added 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."

David M. Maura, Executive Chairman and CEO of Spectrum Brands Holdings Inc., noted, "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.”

HHI will become part of the Opening Solutions Americas Division.

SSN continues to report on this story.