ASSA ABLOY has signed a definitive agreement to acquire the Hardware and Home Improvement (HHI) division of Spectrum Brands $US4.3 billion on a cash and debt free basis.

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, 7500 employees and manufacturing facilities in the United States, Mexico, Taiwan, China and the Philippines.

For the fiscal year ending September 2020, HHI’s net sales were $1.34 billion with an adjusted EBITDA margin of around 19 per cent.

“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 Group.

“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.”

The transaction is expected to close during the fourth quarter of 2021 and HHI will become part of ASSA ABLOY’s Opening Solutions Americas Division.

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