The Black and Decker Hardware & Home Improvement Group, or HHI, a Foothill Ranch-based hardware-manufacturing unit of Stanley Black & Decker, has been sold for $1.4 billion. Stanley Black & Decker has entered into a definitive agreement with Wisconsin-based Spectrum Brands Holdings Inc. for the cash transaction, which is expected to close by the first quarter of 2013, subject to requisite regulatory approvals.
HHI manufactures locksets, security and home hardware and plumbing fixtures, generating annual revenues of nearly $1 billion through its sales of products under the Kwikset, Weiser, Baldwin, Stanley, National and Pfister brand names.
Connecticut-based Stanley Black & Decker described the divestiture as part of its strategy to diversify its revenue base by expanding into higher-growth and emerging markets. The company says the “tax-efficient” transaction will generate $1.3 billion in after-tax revenue, allowing it to repurchase stock, pay down debt, and help pay for the acquisition of another company, Infastech, a mechanical fastening technology firm, with operations in 150 countries on 3 continents.
Dave Lumley, CEO of Spectrum Brands Holdings, said that HHI is a prime company for partnership and mutual growth. “We are very pleased to be acquiring HHI, which is a successful, well-managed business with attractive market positions, international growth potential and established brands. We believe HHI has a bright future as part of Spectrum Brands, and look forward to supporting its product development and growth initiatives to fully realize HHI’s great potential.”
HHI will continue to operate in Foothill Ranch as a separate unit within Spectrum Brands following the close of the transaction. Greg Gluchowski, current president at HHI Group under Stanley Black & Decker will stay on to lead the company following the transition, as well as the current leadership team.
“We welcome Greg and his outstanding team from HHI. He is a proven leader, with a strong record of driving profitable growth and product innovation and development,” Lumley said. “We look forward to Greg and his team playing strong roles in the continued growth and success of Spectrum Brands.”
Gluchowski commented that HHI and Spectrum are a good match. “Spectrum Brands and HHI share the common goals of building and growing strong consumer brands with a dedication to innovative product design and technology,” Gluchowski said. “We are excited to join the Spectrum Brands team, and look forward to being a strong and significant contributor to the overall business as we continue to grow HHI globally.”
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