As widely reported in Bloomberg, The Deal,
The New York Times and The Washington Post, Paul,
Weiss client Spectrum Brands, Inc. signed a definitive agreement to
acquire the Hardware & Home Improvement Group (HHI) of Stanley
Black & Decker, Inc. for $1.4 billion in cash. HHI is a
manufacturer of residential locksets, residential builders'
hardware and faucets for residential applications with such
renowned brands as Kwikset, Weiser, Baldwin, National Hardware,
Stanley, FANAL, Pfister and EZSET. The acquisition of HHI also
includes certain assets of Tong Lung Metal Industry Co. Ltd. (Tong
Lung), a Taiwanese manufacturer of residential and commercial
locksets with facilities in Taiwan and the Philippines.
The transaction is expected to be financed with a portion of the
proceeds of a $800 million term loan facility and the issuance and
sale of $1.04 million unsecured Senior Notes. The transaction is
expected to close in two stages. The financing and the acquisition
of HHI are expected to close during the last quarter of 2012. The
acquisition of the Tong Lung assets is expected to occur during the
first quarter of 2013.
The Paul, Weiss team advising Spectrum included corporate
partners Jeanette Chan, Paul
Ginsberg, Eric Goodison, Jeffrey
Marell and Raphael Russo, counsel Bruce Gruder, Didier
Malaquin and Corinna Yu; employee benefits partner Lawrence
Witdorchic and counsel Reuven Falik; environmental counsel William
O'Brien; intellectual property partner Charles
Googe and counsel Claudine Meredith-Goujon;
litigation partners Mark Mendelsohn and Aidan Synnott
and counsel Bruce
Searby; real estate partner Peter Fisch; and tax partner Richard
Bronstein.