Emtek Hardware Acquired by Fortune Brands
June 24, 2023
Fortune Brands Innovations, Inc. (NYSE: FBIN or “Fortune Brands” or the “Company”), an industry-leading home, security and commercial building products company, has completed the acquisition of the Emtek and Schaub premium and luxury door and cabinet hardware business, and the U.S. and Canadian Yale and August residential smart locks business (collectively the “Business”) from ASSA ABLOY (collectively, the “Acquisition”).
“I am thrilled that Yale, Emtek, August and Schaub have now officially joined the Fortune Brands family. These world-class brands fit perfectly with our portfolio and will accelerate strategic initiatives across our organization. With this acquisition, we will increase Fortune Brands’ scale in connected products, drive innovation and expand our offering in the luxury home products market. We look forward to welcoming our new associates and are confident this acquisition will result in enhanced, innovative products for consumers and customers. This transaction is a great example of Fortune Brands’ disciplined approach to value-creating acquisitions and our larger growth strategy,” said Fortune Brands chief executive officer Nicholas Fink.
The Acquisition purchase price was $800 million, or approximately $700 million net of tax benefits, on a cash-free, debt-free basis, subject to customary adjustments. The net purchase price of $700 million equates to approximately 7.8x 2022 adjusted EBITDA for the Business before synergies. For the second half of 2023, the Acquisition is expected to generate net sales of $190 million to $210 million and earnings per share of $0.02 to $0.04, inclusive of approximately $0.08 unfavorable EPS impact from purchase price amortization. As the Company executes identified synergies, it expects to generate net sales of $500 million to $550 million and EPS accretion of $0.45 to $0.55 in the third full year following the Acquisition.
More information on the Acquisition will be provided on the Company’s Q2 earnings call.
Fortune Brands Innovations, Inc., headquartered in Deerfield, Ill., is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. The Company’s growing portfolio of brands includes Moen, House of Rohl, Aqualisa, Emtek, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe, Yale and August.
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