ASSA ABLOY to Acquire HHI Division of Spectrum Brands

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.

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 $1.342 billion with adjusted EBITDA margin of around 19%.

HHI is headquartered in Lake Forest, CA 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. 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,” said Nico Delvaux, president and CEO of ASSA ABLOY.

“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,” said Lucas Boselli, EVP 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.”

“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,” added David M. Maura, executive chairman and CEO of Spectrum Brands Holdings Inc.

HHI complements ASSA ABLOY in terms of both product offering and geographic scope, with well-known brands, a strong culture and values, high quality products, and skilled employees managed by a professional team.

HHI constitutes a strategically important step in developing ASSA ABLOY’s residential business in North America, supplementing its reputation for innovation on the commercial side. HHI brings a deep knowledge of the residential business and adds complementary products, technology, and solutions.

HHI adds established consumer brands in North America, including Kwikset, Baldwin, Weiser, Pfister and National Hardware, to ASSA ABLOY’s brand portfolio. ASSA ABLOY can bring technological innovation to consumers using HHI’s access to new retail channels, such as homebuilders and DIY retail. HHI’s large installed base and great consumer reputation provides an excellent opportunity to grow ASSA ABLOY’s electromechanical and digital access solutions.

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