Spectrum Brands To Sell Hardware & Home Improvement Segment For $4.3B

Spectrum Brands Holdings Inc SPB has agreed to sell its Hardware & Home Improvement (HHI) segment to ASSA ABLOY ASAZY, a Swedish conglomerate, for $4.3 billion in cash.
HHI division provides security, plumbing, and builders' hardware products to the North American residential segment. Lake Forest, California-based HHI has about 7,500 employees worldwide.
HHI clocked $1.3 billion in net sales for the fiscal year ending September 2020 with an adjusted EBITDA margin of around 19%.
Spectrum Brands expects to receive $3.5 billion in net proceeds and plans to use it to repay debt and reduce its gross leverage ratio to 2.5x times in the near term.
Spectrum Brands expects to maintain its quarterly cash dividend of $0.42 per common share, which will be subject to continued review from time to time.
The deal is expected to be closed in Q4 2021.
Following this sale, Spectrum Brands will consist of three focused business units: Global Pet Care, Home & Garden, and Home and Personal Care.
Price Action: SPB shares closed higher by 17.79% at $93.08 on Wednesday.