Spectrum Brands to buy Stanley Black & Decker's home business unit for $1.4 bn
09 Oct 2012
US consumer products company Spectrum Brands Holdings Inc yesterday said that it will buy Stanley Black & Decker's Hardware & Home Improvement Group (HHI) for $1.4 billion in cash.
The proposed acquisition also includes certain assets of Tong Lung Metal Industry Co. Ltd, a Taiwan-based manufacturer of residential and commercial locksets with facilities in Taiwan and the Philippines.
Spectrum said that 100 million of the purchase price will be held in escrow until the closing of the Tong Lung portion of the acquisition, which is expected to close in the second quarter of 2013.
HHI is a manufacturer of residential locksets, residential builders' hardware and faucets for residential applications with such renowned brands as Kwikset, Weiser, Baldwin, National Hardware, Stanley, Fanal, Pfister and Ezset.
HHI is a leader in its key markets with No 1 position in the US residential locksets (Kwikset), Canada residential locksets (Weiser), US luxury locksets (Baldwin), and US builders' hardware (Stanley/National Hardware), and top 5 position in the US in faucets (Pfister).
HHI generated net sales of approximately $985 million for the 12 months ended 30 June 2012, and around 85 per cent of its annual revenues are generated in North America, with more than 40 per cent coming through US home improvement centres.
"This is a good acquisition for Spectrum Brands that will increase total revenues to over $4 billion and add renowned brands with top market share positions in the growing and profitable hardware and home products business," said Dave Lumley, CEO of Spectrum.
"HHI will also give us an additional platform for global growth using our existing international infrastructure, as well as entry into the growing market of integrated residential security, fire and lighting solutions," he added.
