Small appliance OEM Spectrum Brands Holdings signed an agreement to acquire the Hardware & Home Improvement Group of Stanley Black & Decker for $1.4 billion in cash.
HHI is a leader in key markets with the top position in U.S. residential locksets (Kwikset brand), Canada residential locksets (Weiser brand), U.S. luxury locksets (Baldwin), and U.S. builders' hardware (Stanley/National Hardware), and a top 5 position in U.S. faucets (Pfister).
HHI had net sales of about $985 million and adjusted EBITDA of $188 million in the 12 months ended June 30, 2012. About 85% of HHI's annual revenues are generated in North America, with more than 40% coming through U.S. home improvement centers.
HHI will operate as a separate unit within Spectrum Brands and be managed by Greg Gluchowski, current president of the HHI Group at Stanley Black & Decker. He will report to Spectrum Brands CEO David Lumley and will continue to oversee the HHI management team.
The acquisition of HHI also includes certain assets of Tong Lung Metal Industry, a Taiwanese manufacturer of residential and commercial locksets with facilities in Taiwan and the Philippines. Spectrum Brands will pay $1.4 billion in cash at closing for HHI and the Tong Lung assets, adjusted for net debt and working capital.
The financing and the acquisition of HHI are expected to close during Spectrum's first quarter of fiscal 2013, ending Dec. 31, 2012. The acquisition of the Tong Lung assets is expected to occur during Spectrum's second quarter of fiscal 2013.
to Daily News