ASSA ABLOY has announced that it 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 US and Canada to Fortune Brands.

New business

“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,” said 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 US and Canada, bringing strong, well-known brands and high-quality, innovative products into our portfolio,” said Lucas Boselli, Executive Vice President of ASSA ABLOY and Head of the Americas Division.

Financial effects

According to ASSA ABLOY, for the fiscal year ending September 2022, HHI’s net sales were MUSD 1,652 with adjusted EBITDA margin of 15.6%. The total consideration for the acquisition of HHI amounts to MUSD 4,300 on a cash and debt-free basis. The EBIT synergies are expected to reach around MUSD 100 within a five-year period.

The acquisition is expected to be initially dilutive to the operating margin and EPS.

Emtek and the Smart Residential business in the US and Canada divested to Fortune Brands represented sales of about MUSD 400 in 2022. The selling price for the divested business is MUSD 800 on a cash and debt free basis.

The preliminary divestment result, net of exit costs and before taxes, is estimated to be about MUSD 300.