Fortune Brands completes acquisition of brands from Assa Abloy

Fortune Brands Innovations (FBIN) announced it 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 from Assa Abloy (ASAZY). The acquisition purchase price was $800M, or approximately $700M net of tax benefits, on a cash-free, debt-free basis, subject to customary adjustments. The net purchase price of $700M 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 $190M-$210M and earnings per share of 2c-4c, inclusive of approximately 8c unfavorable EPS impact from purchase price amortization. As the company executes identified synergies, it expects to generate net sales of $500M-$550M and EPS accretion of 45c-55c 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 stated.