January 19, 2022


Comfortable residential structure

ASSA ABLOY to obtain Hardware and House Improvement (“HHI”) division of Spectrum Makes

STOCKHOLM, Sept. 8, 2021 /PRNewswire/ — ASSA ABLOY has signed a definitive settlement to purchase the Hardware and Property Enhancement (“HHI”) division of Spectrum Makes (NYSE:SPB) for a purchase selling price of MUSD 4,300 on a funds and credit card debt totally free basis.

Spectrum Brands’ Hardware and Property Advancement (“HHI”) division is a main provider of stability, plumbing, and builders’ components solutions to the North American household segment with a diversified solution presenting of locksets, taps, and builders´ hardware.

HHI has a varied portfolio of revolutionary items, which includes patented SmartKey engineering and electronic, intelligent and biometric locks. Vital brand names consist of Kwikset, Baldwin, Weiser, Pfister and National Components.

HHI has sturdy, recognized relationships with a assortment of prospects which include huge property advancement facilities, wholesale distributors, homebuilders, on the web retail channels, and residence automation suppliers.

For the fiscal calendar year ending September 2020, HHI’s internet gross sales were being MUSD 1,342 with altered EBITDA margin of about 19%.

HHI is headquartered in Lake Forest, California with some 7,500 employees all over the world and has producing amenities in the United States, Mexico, Taiwan, China, and the Philippines.

“HHI is an exceptional addition to the ASSA ABLOY Group and constitutes an significant strategic phase in establishing our household small business in North The usa. This acquisition advancements our method to bolster our position by introducing complementary goods to the core business enterprise and it will even more accelerate the transformation from mechanical to digital answers,” claims Nico Delvaux, President and CEO of ASSA ABLOY. “I glimpse forward to welcoming HHI and all of its staff into the ASSA ABLOY Group.”

“The acquisition of HHI delivers sturdy, properly-recognised brands and high-high-quality, ground breaking merchandise to the residential portfolio for ASSA ABLOY in North The us, complementing our present company with a passionate and seasoned workforce,” suggests Lucas Boselli, Govt Vice President of ASSA ABLOY and Head of the Americas Division. “Our technological know-how platform and innovation focus dietary supplements HHI’s present choices, and gives an fascinating prospect for us to deliver exceptional benefit to shoppers.”

“Just after stewarding this asset for the past 10 years, the board of administrators and I are self-confident that ASSA ABLOY is uniquely positioned to just take our HHI enterprise and crew users to the future degree of overall performance and achievement. I am personally psyched to see the innovation and interesting new merchandise that this transaction will unlock for long run generations,” states David M. Maura, Govt Chairman and Chief Executive Officer of Spectrum Brands Holdings Inc.

Qualifications and rationale for the acquisition

ASSA ABLOY has remarkable regard for the achievements of HHI, which is a great enterprise with a demonstrated keep track of report. HHI complements ASSA ABLOY in conditions of equally product supplying and geographic scope, with properly-recognized manufacturers, a strong society and values, significant excellent products, and competent staff members managed by a experienced group.

HHI constitutes a strategically essential move in acquiring ASSA ABLOY’s household organization in North The us, supplementing our powerful name for innovation on the professional aspect. HHI provides a deep understanding of the residential company and adds complementary products, engineering, and alternatives.

HHI provides established client brands in North The usa, such as Kwikset, Baldwin, Weiser, Pfister and Nationwide Components, to our model portfolio. ASSA ABLOY can convey technological innovation to customers using HHI’s obtain to new retail channels, these as homebuilders and Do it yourself retail. HHI’s large installed foundation and terrific consumer track record gives an great option to improve our electromechanical and electronic accessibility options.

HHI has a lengthy observe history of innovation, specifically within just SmartKey know-how, which will enhance ASSA ABLOY´s supplying. ASSA ABLOY expects strong synergies, the greatest factors getting our greater product or service featuring, improvements in technological know-how, distribution, and procurement. The EBIT synergies are expected to achieve about MUSD 100 in 2025.

HHI focuses on the household room in North The us, which is very desirable: underpinned by favorable macro tendencies these types of as latest powerful home revenue, housing begins, an aging housing inventory, and increased client target on residence repair and reworking.

HHI will turn into element of the Opening Methods Americas Division.

Funding of the acquisition

The transaction will be completely funded by present income and new debt.

ASSA ABLOY maintains its motivation to a sturdy investment grade credit history score profile.

Financial phrases and outcomes on ASSA ABLOY

The total thought for the acquisition of HHI amounts to MUSD 4,300 on a cash and credit card debt free foundation.

For the fiscal year ending September 2020, HHI’s web income ended up MUSD 1,342 with modified EBITDA margin of all-around 19%. Primarily based on publicly offered financial details for 2020 for both equally HHI and ASSA ABLOY, the acquisition of HHI will include about 14% to ASSA ABLOY´s consolidated revenue.

The running margin impact for ASSA ABLOY is originally predicted to be dilutive. The acquisition will be accretive to EPS from the start out.

Overall acquire price tag of MUSD 4,300 displays a various of 14x anticipated fiscal yr 2021 (30 September) modified EBITDA of the HHI segment. The buy price tag net of the existing benefit of tax benefits signifies a several of about 10x adjusted EBITDA such as synergies.

Circumstances for the transaction

The transaction is conditional upon regulatory approval and customary closing situations and is predicted to close in the course of the fourth quarter of 2021.

ASSA ABLOY has agreed to pay a termination fee of MUSD 350 in sure conditions if the transaction agreement would be terminated and necessary regulatory approvals would not have been received.


ASSA ABLOY is staying suggested by BofA Securities as exceptional economical advisor, and Linklaters LLP and Hogan Lovells as legal advisors.

Meeting contact

A conference connect with will be held at 08:00 am (CET), tomorrow Thursday September 9. During the convention get in touch with, ASSA ABLOY´s President and CEO Nico Delvaux, CFO Erik Pieder and Head of the Americas Division Lucas Boselli will explain the acquisition and reply to issues linked to this push launch.

Dial-in figures to the convention phone: +46 8 505 583 53, +44 333 300 9030 or +1 646 722 4902

Webcast: https://assa-abloy-webcast.creo.se/assaabloy

For a lot more details, please get hold of:

Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, CFO and Govt Vice President, tel. no: +46 8 506 485 72
Björn Tibell, Head of Investor Relations, tel. no: +46 70 275 67 68

This is info that ASSA ABLOY AB is obliged to make community pursuant to the EU Sector Abuse Regulation. The information and facts was submitted for publication, by means of the agency of the get in touch with persons set out over, at 18.00 CET on 8 September 2021.


The ASSA ABLOY Team is the international chief in entry options. The Team operates globally with 48,000 staff and product sales of SEK 88 billion. The Group has leading positions in regions these as economical doorway openings, dependable identities and entrance automation. ASSA ABLOY’s improvements allow harmless, safe and practical entry to physical and electronic sites. Each individual day, we help billions of men and women expertise a more open entire world.

This facts was brought to you by Cision http://information.cision.com


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