Swedish Lock Conglomerate Assa Abloy to Acquire August Home
Although the final terms of the deal aren't disclosed, Swedish lock giant Assa Abloy has added August Home to their portfolio. August Home joins the ranks of a few international lock company - including Yale - and gains the backing of the world's largest lock manufacturer by sales volume.
The deal is two-fold for Assa Abloy - they want to get into the US market and they want to stay relevant as smart locks begin to dominate the market. August Home has also played a two-part role, offering their same DIY, straight to consumer product, to dealers with special SKUs that help margins and build trust for early adopters.
On the surface, August will remain the same. Branding and operations will be untouched, with August CEO and co-founder Jason Johnson remaining at the helm, as well as co-founder Yves Behar, continuing his role. The deal is expected to close by the end of Q4 this year.
“I am very pleased to welcome August into the ASSA ABLOY Group," Johan Molin, President and CEO of Assa Abloy, said in a statement." August constitutes a strategic addition to the Group and reinforces our position in the residential smart door market."
Although this deal isn't without a few footnote. One question is what this means for the pro channel that August Home has worked so hard to capture. Of course, following in the footsteps of Yale, there is nothing to worry about as Yale has had a lot of success with their dealers. Another narrative is the stability of the $23 billion Swedish as CEO Johan Molin considers stepping down next year.
The win-win comes from Assa Abloy hoping to capitalize on the booming market, and August Home leapfrogging competitors such as smart-lock competitors Otto and Latch, and traditional manufacturers such as Kwikset and Schlage.