The acquisition process has not been a simple operation, as in September last year, the U.S. Department of Justice announced it would block the proposed acquisition of HHI due to alleged competitive concerns. In December, Assa Abloy entered into binding agreements with Fortune Brands for the divestment of Emtek and the Smart Residential business in the U.S. and Canada to fully resolve all the alleged competitive concerns surrounding the proposed acquisition of HHI.

Then in May, Assa Abloy announced it had reached a settlement agreement with the DOJ regarding the HHI acquisition and that it would proceed with the divestment of Emtek and the Smart Residential business in the U.S. and Canada to Fortune Brands.

And now, as the matter concludes, Assa Abloy has finally divested its interests in Emtek and acquired HHI.  "HHI is an excellent addition to Assa Abloy, complementing our existing business in terms of product offering and geographic scope, and I am delighted to welcome HHI and all its employees to Assa Abloy,” says Nico Delvaux, President and CEO of Assa Abloy. “I am also pleased that employees and customers of our divested businesses will be in good hands, and I wish them future success.”

"I’m excited to welcome HHI to Opening Solutions Americas. This acquisition opens new opportunities for our residential business in the U.S. and Canada, bringing strong, well-known brands and high-quality, innovative products into our portfolio,” says Lucas Boselli, Executive Vice President of Assa Abloy and Head of the Americas Division.

Financial effects on Assa Abloy

According to the financial figures released by the company, for the fiscal year ending September 2022, HHI’s net sales were MUSD 1,652 with adjusted EBITDA margin of 15.6%. The total consideration for the acquisition of HHI amounts to MUSD 4,300 on a cash and debt free basis. The EBIT synergies are expected to reach around MUSD 100 within a five-year period.

The acquisition is expected to be initially dilutive to the operating margin and EPS. HHI was consolidated into Assa Abloy as of June 20, 2023.

Emtek and the Smart Residential business in the U.S. and Canada divested to Fortune Brands represented sales of about MUSD 400 in 2022. The selling price for the divested business is MUSD 800 on a cash and debt free basis. The divestiture was also completed on June 20, 2023.