Spectrum, which is majority owned by Harbinger Group Inc., says the acquisition of the hardware and home-improvement business should add 75 cents to 80 cents per share in fiscal 2013 and add more than $1 per share in fiscal 2014, excluding one-time transaction and integration costs.
The hardware and home-improvement business will operate as a separate unit once the deal closes, which is expected during Spectrum's first quarter in fiscal 2013.
It will be run by Greg Gluchowski, who currently serves as the unit's president at Stanley Black & Decker. Gluchowski will report to Spectrum CEO David Lumley.
The deal announced Tuesday also includes certain assets of Taiwan's Tong Lung Metal Industry Co., which makes residential and commercial locksets. Stanley Black & Decker purchased Tong Lung over for summer for about $100 million. Spectrum's acquisition of the Tong Lung assets is anticipated to close in the second quarter.