CLEVELAND, Sept. 17, 2021 /PRNewswire/ -- ASSA ABLOY, a leading global provider of security products and services for both residential and commercial customers, announced today that it planned to purchase the Hardware & Home Improvement segment of Spectrum Brands, a diversified consumer products company. The transaction, which is expected to close by the end of 2021, is expected to add more than $1 billion to ASSA ABLOY's annual sales.
According to Freedonia Group industry analyst Matt Zielenski, "ASSA ABLOY's purchase of Spectrum Brands' Hardware & Home Improvement segment will further expand its presence in the key US market. ASSA ABLOY already plays a leading role in the commercial side of the market, being both a leading manufacturer of locks, security systems, and high-performance doors and windows. The company will now acquire a leading provider of locks and related hardware to the large residential market, including such well-known brand names as Kwikset, Weiser, and National Hardware. Given the expected strength of the US housing market and the home improvement segment, ASSA ABLOY can expect solid sales from its new operations going forward"
Zielenski also noted that ASSA ABLOY will also be acquiring the Pfister and Baldwin lines of plumbing fittings, such as faucets. While these businesses could represent an entry by the company into the large plumbing products industry in the US, it is more probable that these non-core operations will be divested, allowing ASSA ABLOY to invest in its core security products and services businesses or pay down debt.
For Spectrum Brands, the transaction allows the firm to concentrate on its core operations – pet products, lawn and garden consumables, personal grooming products, and small kitchen appliances. The company can use the cash generated by the sale to pay down debt and expand operations in its core competencies.
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