Fortune Brands Innovations Gets A Nod From Authorities For Impending Buyout Of ASSA ABLOY's Hardware Businesses

Last week, Fortune Brands Innovations Inc FBIN got a green signal from authorities to proceed with the previously announced acquisition of businesses from ASSA ABLOY, Inc ASAZF.
The Department of Justice, ASSA ABLOY, Spectrum Brands Holdings Inc SPB, and Fortune Brands announced the successful resolution of the impending litigation upon which the acquisition was conditioned.
The acquisition disclosed on December 1, 2022, comprised ASSA ABLOY's hardware business - Emtek and Schaub premium luxury door and cabinet hardware business and the US and Canadian Yale and August residential smart home locks business.
The purchase price of the acquisition is $800 million, or about $700 million net of tax benefits, in cash on a cash-free, debt-free basis. FBIN will receive tax benefits for over 15 years with a net present value of around $100 million, and the net purchase price of $700 million signifies 7.8x 2022 adjusted EBITDA for FBIN, before synergies.
With the acquisition, FBIN's security and connected smart home portfolio in the U.S. and Canada will get a boost from the addition of Yale and August business. Also, Emtek and Schaub business will complement FBIN's House of Rohl suite of brands.
The acquisition is expected to close by June 30, 2023. For 2023, the company expects the acquisition to generate net sales of $190 million-$210 million and EPS of $0.02 to $0.04.
Post-acquisition in the third full year, FBIN expects to generate net sales of $500 million to $550 million and projects EPS accretion of $0.45 to $0.55.
Price Action: FBIN shares closed higher by 2.32% at $63.85 on Friday.

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