Spectrum Brands Completes Acquisition of Tong Lung Residential Lockset Business
Apr 12, 2013
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Spectrum Brands Holdings, Inc. completed the acquisition of the residential lockset business of Tong Lung Metal Industry Company, giving it new Asian and Latin American sales channels for its electronic security products.
Tong Lung is a Taiwanese manufacturer of residential and commercial locksets and related hardware. The acquisition is in connection with Spectrum Brands purchase of the Hardware & Home Improvement Group (HHI) of Stanley Black & Decker, in December of 2012.
The commercial lockset business of Tong Lung will remain with Stanley Black & Decker.
$100 million of the $1.4 billion HHI purchase price had been held in escrow until the closing of the Tong Lung portion of the HHI acquisition. The purchase includes the Tong Lung Metal Industry Co. Ltd. name, a major residential lockset manufacturing plant in Subic Bay, Philippines and sales, R&D, and engineering operations for tooling and new product development in Taiwan.
Tong Lung's residential business had 2011 sales of approximately $48 million, excluding sales to HHI. Tong Lung's residential OEM and branded lockset sales are primarily to customers in North America, Asia, and Latin America. Tong Lung branded products are predominantly sold under its EZSET brand.
Tong Lung's sales and distribution channels in Asia and Latin America will provide new growth opportunities for HHI's international lock and electronic security products. Spectrum Brands said HHI's focus on innovation in traditional and electronic product categories will be enhanced through Tong Lung's manufacturing tooling center and in-house engineering and R&D capabilities, to add "velocity and breadth" to new product introductions.
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