Madison-based Spectrum Brands Holdings Inc., a global consumer products company, announced today it has signed a definitive agreement to acquire the Hardware & Home Improvement Group (HHI) of Stanley Black & Decker Inc. for $1.4 billion in cash.
HHI is a manufacturer of residential locksets, residential builders’ hardware and faucets for residential applications with brands such as Kwikset, Weiser, Baldwin, National Hardware, Stanley, FANAL, Pfister and EZSET.
HHI generated net sales of approximately $985 million and adjusted EBITDA of $188 million for the 12 months ended June 30, 2012.
Approximately 85 percent of HHI’s annual revenues are generated in North America, with more than 40 percent coming through U.S. home improvement centers.
“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, chief executive officer of Spectrum Brands. “The scale and expanded product offering we gain will further balance our sales profile and provide exciting cross-selling opportunities from expanding sales of Spectrum Brands’ products to major U.S. home improvement centers and increasing HHI sales to leading global mass merchants and other Spectrum Brands’ retailers. Spectrum’s and HHI’s product lines are completely complementary, significantly expanding our portfolio of products. 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.”
Spectrum Brands, which is expanding its presence in Wisconsin, also owns the Rayovac line of batteries.
