ASSA ABLOY's acquisition of HHI and the divestment of Emtek and the Smart Residential business in the U.S. and Canada have been completed
STOCKHOLM, June 20, 2023 /PRNewswire/ -- Today, ASSA ABLOY 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 U.S. and Canada to Fortune Brands.
"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," says 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 U.S. and Canada, bringing strong, well-known brands and high-quality, innovative products into our portfolio," says Lucas Boselli, Executive Vice President of ASSA ABLOY and Head of the Americas Division.
Financial effects on 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.
HHI was consolidated into ASSA ABLOY as of today, June 20, 2023.
Emtek and the Smart Residential business in the U.S. 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 divestiture was completed today, June 20, 2023.
The preliminary divestment result, net of exit costs and before taxes, is estimated to be about MUSD 300.
For more information, please contact:
Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, CFO and Executive Vice President, tel. no: +46 8 506 485 72
Björn Tibell, Head of Investor Relations, tel. no: +46 70 275 67 68, e-mail: bjorn.tibell@assaabloy.com
This information is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 18.45 CET on 20 June 2023.
About ASSA ABLOY
The ASSA ABLOY Group is the global leader in access solutions. The Group operates worldwide with 52,000 employees and sales of SEK 121 billion. The Group has leading positions in areas such as efficient door openings, trusted identities and entrance automation. ASSA ABLOY's innovations enable safe, secure and convenient access to physical and digital places. Every day, we help billions of people experience a more open world.
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