Fortune Brands announces acquisition of several brands from ASSA ABLOY
Author : Pankaj Singh | Published Date : 2022-12-02
Millwork company, Fortune Brands Home & Security (FBHS) has recently announced that it has inked a definitive agreement to overtake the Emtek and Schaub residential hardware business along with the Canadian and the U.S. Yale as well as August-based residential smart home locks business from Swedish conglomerate ASSA ABLOY.
The deal is expected to be finalized for $800 million, or around $700 million net of tax benefits, in cash on a cash-free, debt-free basis, further subjected to customary closing conditions.
Speaking on the latest development, Fortune Brands Chief Executive Officer Nicholas Fink stated that this acquisition aligns perfectly with the firm's strategy as a brand, innovation, and channel leader. The CEO also noted that Yale and August would bring two great brands and a lot of engineering expertise into the already robust security portfolio.
Fink mentioned that Emtek and Schaub will empower to enter a growing, branded, and highly profitable category in a leadership position, where it will be able to fasten innovation and leverage the channel and consumer insights to offer significant value over time. This deal fits with Fortune Brands' methodical strategy for making value-adding acquisitions.
Fink further went on to say that with the existing loyal channel relationships, iconic brands, and supply chain expertise, the firm believes that these additions will lead to offering enhanced and innovative products to consumers.
For the record, the business, with projected revenues of $350 million in 2021, consists of market-leading brands in the quickly expanding smart lock and the very lucrative and expanding premium and luxury hardware categories. Over time, Fortune Brands are anticipated to bring significant growth and cost savings for the Business.
The firm expects to receive tax benefits for more than 15 years with a net present value of around $100 million and a net purchase price of $700 million, equaling around 7.8x estimated 2022 adjusted EBITDA for the business before synergies.
About Author
Pankaj Singh . .
Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605
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