MADISON, Wis.-Spectrum Brands, parent company of the Remington brand of personal-care products and the Russell Hobbs line of small electrics, has made a major move into the home-improvement arena by signing an agreement to purchase the Hardware & Home Improvement Group of Stanley Black & Decker.
Spectrum will acquire the group for $1.4 billion in cash. The Hardware & Home Improvement Group manufactures residential locksets, hardware and faucets for residential applications. Its brand lineup includes Kwikset, Weiser, Baldwin, National Hardware, Stanley, FANAL, Pfister and EZSET.
According to a Spectrum statement, the group holds number one market positions in the United States for locksets, luxury locksets and builders’ hardware; and in Canada for residential locksets. It is also one of the top five producers of faucets in the United States. The group generated $985 million in revenue in the 12 months ending on June 30, 2012.
Spectrum said the acquisition is expected to increase its sales growth and margins. Dave Lumley, Spectrum’s CEO, said it should boost Spectrum’s revenues to more than $4 billion. Lumley said the deal will enhance Spectrum’s business by adding to its product offering, creating additional cross-selling opportunities with home-improvement centers and increase sales to global mass merchants and other Spectrum retailers.
Spectrum already owned the Black & Decker license for small appliances.