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Fortune Brands to acquire four brands from Assa Abloy for $800M
The Fly

Fortune Brands to acquire four brands from Assa Abloy for $800M

Fortune Brands (FBHS) announced it has entered into a definitive agreement to acquire the Emtek and Schaub premium and luxury door and cabinet hardware business and the U.S. and Canadian Yale and August residential smart home locks business from Assa Abloy (ASAZY) for a purchase price of $800M, or approximately $700M net of tax benefits, in cash on a cash-free, debt-free basis, subject to customary adjustments. With revenues of approximately $350M in 2021, the business is comprised of brands in the 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. Fortune Brands expects to receive tax benefits over a 15-year period with a net present value of approximately $100M, and the net purchase price of $700M equates to approximately 7.8x estimated 2022 adjusted EBITDA for the business before synergies. The acquisition is conditioned on the successful closing of the acquisition by Assa Abloy from Spectrum Brands (SPB) of its Hardware and Home Improvement business following a favorable resolution of the court proceedings with the Department of Justice. The acquisition is expected to close in the second quarter of 2023.

Published first on TheFly

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