Fortune Brands to acquire door hardware companies

DEERFIELD - Fortune Brands Home & Security Inc. said it has entered into a definitive agreement to acquire the Emtek and Schaub premium and luxury door and cabinet hardware business and the U.S. and Canadian Yale and August residential smart home locks business for $800 million.

Both companies are owned by ASSA ABLOY Inc. and the actual purchase price will be roughly $700 million net of tax benefits on a cash, debt-free basis, subject to customary closing adjustments, the company said. Fortune Brands expects to receive tax benefits over a 15-year period with a net present value of approximately $100 million.

With revenues of approximately $350 million in 2021, the businesses are comprised of top brands in the fast-growing smart lock and the highly profitable and growing premium and luxury hardware categories, Fortune Brans said. The company said it expects to add meaningful growth and cost synergies to the businesses over time.

"This acquisition is perfectly aligned to our strategy as a brand, innovation and channel leader. Yale and August will bring two great brands and significant engineering expertise into our already powerful security portfolio," said Fortune Brands CEO Nicholas Fink. "Emtek and Schaub allow us to enter a branded, growing and highly profitable category in a leadership position, where we can accelerate innovation and leverage our channel and consumer insights to create significant value over time."

The acquisition is conditioned on the successful closing of the acquisition by ASSA ABLOY from Spectrum Brands Inc. of its hardware and home improvement business following a favorable resolution of the court proceedings with the Department of Justice. The acquisition is expected to close in the second quarter of 2023.