Assa Abloy Acquiring HHI / Kwikset
Assa Abloy is acquiring Spectrum Brands 'Hardware & Home Improvement' (HHI) division, including lock and security fixture brands Kwikset, Baldwin, and Weiser, in a $4.3 billion USD deal.
In this note, we examine:
- Investors Calls from both Assa Abloy and Spectrum Brands
- Spectrum Brands / HHI
- Company product offerings and access niche
- Impact on Kwikset moving forward
- What the deal means for Assa partners
Spectrum ******/******* **********
**********-************* ****** ******* ******* **** *********, *** ** residential ******* *** *** ****** *****************. *******, ***** *** ****** ******* (high-end ***********)*******, ******** ****** *******************, *** *********** ************ ****** ******************* ********.
******* ********** ** ********** ** ****, *** *** ****** ** *** most ******** **** ****** ** *********** locks, ******* ***** *****, *** ******* inventory ** ******** ***** ****-*********** ****** stores (*.*.: ***, **** *****, *****).
****'* **** ** *** ************** *** ********** ** *******:
**** **** ** ****** ~*,*** ********* as **** ** ************* ********** ** China, ******, ***********, ******, *** *** US, ** **** ** **** ****.
Purchase *****
**** ** ****** $*.* ******* ** cash, ~** *** ********'* ****** ******* and ~*** ***’* ******** **** ******** EBITDA. ** ** * ********** **** price ** ** **** *** ***** Assa's ******** ****** ********, ** ** possible **** **** ****** **** **** deal.
Spectrum ********
******** *** *** ********* **** ******** with *** ****, **** *** ******* boasting **** **** **** **** *** one ******** ** ******** ($*.* *******) than *** ** ******** *** ***** prior ** *** **** (~$* *******). Spectrum's ***** ****** ** *** ****:
******** ** ********* ~*/*** ** *** total ******** ** *** *** ****, a **** *** *******'* *** **** will ****** *** ********* ******** ***** (** ****** ****** * ******** *****: ****** *** ****, **** & Garden, *** **** *** ******** ****) to "****** * **** **** **** consumer ******* ******* **** ****** ****** rates *** ****** *******."
HHI ******* **** *** ****, ******* *****
***'* ******* ** ~$*.* ******* *** has **** ******* **** *** **** years. *******, *** ******** *** ***** profitability **** ** ******** ****** ****** of ****** **%.
5% ****** **** *****
***** ***'* ******* ****** *** **** stagnant, **** **** ** *** ********'* call **** **** *** ****** *** a *% ****** ****** **** ***** forward, ** *** ********'* ****, ***** embedded *****:
Moving **** ********** ** *****************
*********, ****** *** ** ***'* ******** are **** ********** ******* *****.
*** ** *** ***** ****** ******* Assa **** **** *** **** ** the ********** ** *****************/*******.
Profit ********* ~$*** ******* ******** ********
**** ******* $*** ******* **** ********* from **** ****, **** ***** *********** on *** ********'* **** ***** ** both ** *** **** *** ******* sides:
** *** **** ****, ** *** good ************* ** ************* ********, ***********, distribution *** ********. *** ****, ** the ****** ****, ********** ****** ************* in ***** ******* *** ***** ******* on *** **** ****. *** * think *******, ****, ***'* *** ******, we **** * **** ****** ****** creation, **** ** *** ****** ** the ** ** *** ********** ****, and ******* ** ******** **** ** user ** ***********, *** ******* ***** verticals, *** *** **** ****** ** really *** **** ** *** *** Business.
Mostly ******** *** **** ********
**** **** ** ********* ** ****** security *** ******** *** **** *** also ********* * ~$*** ******* ******** business,*** ********'* **** **********:
**** **** **** *** *** **** what **** **** ** **** *** plumbing ********, ** *** ********'* ****.
Debt ***** *** ***** ********* ** **** *****
***** *** ********** **** ***** *** this ****, ** **** ************* ******** the **** **** ** **** *** Assa **** ********* **** ** ***** plans ** ** *** ****** :
** **** ** ** *****, ** will ** **** ** ******** ** work ** *** ******** ** ************ our ********** ******* ****** *** ************ with **** *** ** ************ **** we **** ****.... ***, ** **** have *** ********** ** ** ***** 15 ** ** ************ *** **** like *** *** **** [**].
Kwikset ******* **** *******
** *** ******** *** *********, ******* is *** ******* *** **** ********** brand ** *** *****. *** ******* sells ******* * ******* ** ********* and ************ ********** ***** ******* *** online.
Kwikset's ******* *********
************ **** ************** *** *** *********** *******.
*** *** ******* ** *** ** the **** ******** **** ***** ** noted ****** ******* *** ****** ******* ******** ***** ******** *** ********* **** in *** ***** ******** *********** ******, use *** ******** *** ***** **** the *** ********** ******* ** **** due ** *** ****, ***-**************, *** common ************.
*******'* '***' **** ** *** ***** is *** ** *** * **** commonly **** ** *** **, **** by ***-******* ******, **** *****, *****, and **** ********* ********** ************-******* ***** ******:
*** ** *******'* **** ******** **** lock ******** ** *********** ****** *********** ***** **** *** '**** rekeyed', *********** *** **** ** ***** the ******** ** ****** ****, ********* performed ** * ********* **** *** cost * ******* ******* ** **** per **** *** ******** * ******* call.
*******, ** *** ******** ***** ***** shows, ** ***-**** *** ***** ***** own ***** **** ******** (********) ******* ***/*** ****:
Weiser ****** *******
******* ******** ***** ** *** ****,******, ********* ****** **-***** ******* ** Canada ***** *** ****** ****. ***** market ***** *** ********* *** *******, distribution *** ******* ** ***** ** Canada ***** *** ****** *****.
Baldwin ******** ****-*** ***********
********* ******* ******* ** *** ****, but ****** ******* ** ********* **** expensive, ********* **** ***** *********, *** does****** ****** *** ******* ********** ******* *********** ********.
** ******** ** **** *****, ******* does ******* ********, ******** (********) *****, and ******** **** ***** *****, ****** rods, **** *****, *** ****-*** ****** hardware.
*** *******'* ***** **** ********** ****** is ********* *** * **** ********* & *********** *****, *** ** *****-********* ******** **** the***** ****** ******, ** ** *** ***** ****.
Commercial ******* ****** ****** *****
** ****'* ************ *** ******* ** the *********** ****** ***** ******* ******** DIY ********* *** ********, ** ****** the ********* ****** ** *** **** to ** ***** *** **** ********.
Impact ** *******
***** **** **** ** *** ** the ********'* ******* *********, ******* *** is ***** **** *********** *********, ********** influence, *** *********** ****.
*******'* ************* ** ****** *** *** Philippines *** **** ******* **** ******* capacities **** ***** **** ******.
Assa ********* ********** ********
*** ******** ** ****'* ******** ** North ******* ** ** *** ********** lock *** ****** *****, ***** *** parent ** ****** *******, ***, ******, Norton, *** *******.
*******, *** ******* **** **** ******* residential-focused **** *** ********* ********* ********** ** ******* ****.
**** ************ ********** *** *********** ** increasing ******** ** *** ***** ******** residential *******. ****'* *** *** ********* Nico ******* **** ** *** *******:
"*** ** ** ********* ******** ** the **** ***** ***** *** *********** an ********* ********* **** ** ********** our *********** ******** ** ***** *******."
******* **** **** *** *********** "**** further ********** *** ************** **** ********** to ******* *********” *** ******* **** not **** ********.
** ** *** ********** ***** ******* in ****'* ********** ******** *** **** update ** *********** *******.
Vote / ****
*****, **** ********. **** *** ********** that ***** ******** ** ** ********** and *** ** *********** ** **'* complementary. * ***'* **** ****** **** on *** ********* ******.
** *** ********'* ****, **** *** quite ********* **** *** **** ***** not **** *** ********* ******, **** excerpts **** ****:
** **** ****** ** *** ** important ******* *** ***** ******* ********** of $*** *******. ** **** **** commit ** **** ***** ** **'** very **** **** *** **** *** go *******, ** *** **** ********* that **** *** ** * **** closing ** *** ***** **** .. our ********* *** **** ** **** low *********** ****, **** *** ******** is ****** ** *** ********** ****.
**** ***** ******** *** **** *********, [Assa] **** **** ** *** **** end, *** ***** **** *** **** more ** * **** ****** *** also *** **** **** *********** ********, also *** ********* ****
** ***** ** **** ***** ** a **** ****** **** **** **** at ***** ******** ********-*** *** ******** segment.
******* ***** **** ******** ******* ***, particularly ***** ***** *******-****** ********** ****** and ******/***** *******, *** ***** ******** don't ****. **** **** ****.
**** *********** * ********? *** **** Assa *** **** ********* ****** **** all ** ***** ************?