ASSA ABLOY has entered into binding agreements with Fortune Brands for the sale of Emtek and Schaub premium and luxury door and cabinet hardware business, along with their U.S. and Canadian Yale and August residential smart home locks business (collectively the “Business”). These sales will fully resolve all the alleged competitive concerns surrounding the proposed acquisition of Hardware and Home Improvement division (“HHI”) of Spectrum Brands. Residential businesses outside of the U.S. and Canada are not in scope to be divested.
“With Fortune Brands, our excellent US and Canadian residential businesses will get a good and strong home with an experienced owner,” said Nico Delvaux, President and CEO of ASSA ABLOY in a statement. “While keeping these residential businesses in the US and Canada would have been preferred, we are confident that we have now fully eliminated all competitive concerns alleged by the DOJ and that the acquisition of HHI is in the long-term interest of our shareholders.”
“This Acquisition is perfectly aligned to our strategy as a brand, innovation and channel leader,” said Fortune Brands Chief Executive Officer Nicholas Fink in a statement. “Yale and August will bring two great brands and significant engineering expertise into our already powerful security portfolio. 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. This transaction is consistent with Fortune Brands’ disciplined approach to value-creating acquisitions.”
With revenues of approximately $350 million in 2021, the Business is comprised of leadership brands in the fast-growing smart lock and the highly profitable and growing premium and luxury hardware categories. Fortune Brands expects to add meaningful growth and cost synergies to the Business 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,” added Fink.
The Fortune Brands acquisition is expected to close in the second quarter of 2023.