Sweden. Assa Abloy Financial Services AB
|Date of agreement:||09 Jun 2023|
|Customer:||Assa Abloy Financial Services AB|
|Amount in EUR:||EUR 100 million|
|NACE sector / loan type:||Manufacture of fabricated metal products|
The loan will partly finance ASSA ABLOY’s acquisition of Spectrum Brand’s Hardware and Home Improvement (HHI) division. The acquisition was announced in September 2021.
The HHI division is a leading provider of security, plumbing, and builders’ hardware products to the North American residential segment. The company has a varied portfolio of innovative products, including SmartKey technology and electronic, smart and biometric locks. Key brands include Kwikset, Baldwin, Weiser, Pfister and National Hardware.
HHI is headquartered in California, with some 7,500 employees and manufacturing facilities in the United States, Mexico, Taiwan, China and the Philippines.
The ASSA ABLOY Group is a global leader in access solutions. The Group operates worldwide and has 52,000 employees, with leading positions in areas such as efficient door openings, trusted identities and entrance automation.
Fulfilment of NIB's mandate
Productivity: The acquisition of Spectrum Brand’s HHI division is considered a strategic step for ASSA ABLOY in establishing access to the residential segment in North America. The acquisition provides an opportunity to diversify product offerings and benefit from HHI’s large consumer base, brands and complementary products. In addition to the market in North America, the acquisition is also expected to strengthen local market positions in South America and Australia. Synergies with technological innovations from ASSA ABLOY’s hub in Scandinavia are anticipated to accelerate the transformation of HHI’s products from mechanical to digital access solutions, contributing to organic growth of around 5%.
Environment: The acquisition is rated neutral from the environmental perspective.
Impact indicators in relation to the investments
- EBIT synergies of USD 100 million by 2025
- Adding 14% of sales to ASSA ABLOY
- Innovation to increase organic growth by 5%
Project: The acquisition of the HHI division includes eight larger production sites in China (2), Mexico (2), Philippines (3) and Taiwan (1). A Phase I Environmental Site Assessment has been performed for all sites to assess if the current or historical property uses have impacted the soil or groundwater and if this poses threat to the environment or human health. No material issues were found.
Counterparty: ASSA ABLOY has committed to science-based targets for climate action aligned with the Paris Agreement 1.5 degrees target, with a 50% reduction of greenhouse gases (scope 1 and 2) by 2030 and reaching net-zero by 2050. The group has a target to carry out sustainability audits of 95% of its direct suppliers by 2025. The group also has an ambitious programme to phase out hazardous substances, like solvents, in their production.