Fortune Home Security Signs With ASSA ABLOY
Fortune Home Security Signs With ASSA ABLOY – Fortune Brands Home & Security, an industry-leading home and security products company in the United States, will acquire ASSA ABLOY’S Emtek and Schaub premium and luxury door and cabinet hardware businesses, as well as the U.S. and Canadian Yale and August residential smart home locks business.
The acquisition is conditioned on the successful closing of the acquisition by ASSA ABLOY from Spectrum Brands of its Hardware and Home Improvement business following a favourable resolution of the anti-trust court proceedings with the U.S. Department of Justice.
The U.S. Department of Justice has filed a civil antitrust lawsuit over ASSA ABLOY’s $US4.3 billion acquisition of the Hardware and Home Improvement division of Spectrum Brands, arguing the acquisition disadvantages consumers by reducing competition.
This latest transaction is valued at $US800 million, or approximately $700 million net of tax benefits, in cash on a cash-free, debt-free basis, subject to customary adjustments.
“This acquisition is perfectly aligned to our strategy as a brand, innovation and channel leader,” said Fortune Brands CEO Nicholas Fink.
“Yale and August will bring 2 great brands and significant engineering expertise into our already powerful security portfolio, while Emtek and Schaub allow us to enter a branded, growing and highly profitable category in a leadership position, where we can accelerate innovation and leverage our channel and consumer insights to create significant value over time.”
ASSA ABLOY’s luxury door and cabinet hardware and residential smart lock businesses recorded revenues of approximately $350 million in 2021. Fortune Brands says it expects to add meaningful growth and cost synergies to the businesses over time.
“Together with our existing iconic brands, loyal channel relationships, and supply chain expertise, we believe these additions will result in enhanced, innovative products for consumers and customers. We can accelerate growth and profitability by deploying our Fortune Brands Advantage capabilities to create value for all stakeholders,” said Fink.
The acquisition is expected to close in the second quarter of 2023.
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