ASSA ABLOY announced it completed the acquisition of Spectrum Brands’ Hardware and Home Improvement division (HHI) and the divestment of its U.S.- and Canada-based Emtek and Smart Residential business to Fortune Brands Innovation Inc. HHI was consolidated into ASSA ABLOY as of June 20, officials said, for the total consideration of $4.3 billion USD on a cash and debt-free basis.
Emtek and the Smart Residential business, including Yale and August residential smart locks, represented sales of about $400 million in 2022, fetching a selling price for the divested business of $800 million on a cash and debt-free basis.
For Fortune Brands, the net purchase price of $700 million for ASSA ABLOY’s Emtek and Smart Residential business is expected to generate net sales of $190 million to $210 million for the second half of 2023. Ultimately the company expects to generate net sales of $500 million to $550 million in the third full year following the acquisition.
“I am thrilled that Yale, Emtek, August and Schaub have now officially joined the Fortune Brands family,” says Fortune Brands CEO Nicholas Fink. “These world-class brands fit perfectly with our portfolio and will accelerate strategic initiatives across our organization. With this acquisition, we will increase Fortune Brands’ scale in connected products, drive innovation and expand our offering in the luxury home products market. We look forward to welcoming our new associates and are confident this acquisition will result in enhanced, innovative products for consumers and customers.”