Fortune Brands Enters Strategic Partnership with Value Hybrid to Develop Connected Lockout Tagout Solutions; Acquires Minority Stake

Published 6 months ago via Business Wire

Fortune Brands Innovations, Inc. (NYSE: FBIN or “Fortune Brands” or the “Company”), an industry-leading innovation company focused on creating smarter, safer and more beautiful homes and improving lives, today announced it has acquired a minority stake and entered into a strategic partnership with Value Hybrid Global, S.L. (“Value Hybrid”), a leading software and SaaS startup focused on the delivery of connected lockout tagout (cLOTO) solutions. This partnership will expedite Master Lock’s ability to bring to market new and innovative products in the emerging field of cLOTO, and expand its presence in commercial safety solutions.

Fortune Brands Chief Executive Officer Nicholas Fink said, “Connected lockout tagout is a significant opportunity for Fortune Brands. It is an attractive, emerging field that we are well positioned to lead in, given our highly recognized Master Lock brand, lockout tagout expertise, channel strength and commitment to invest in our highest-growth opportunities, which includes our expanding portfolio of connected products. We are excited to be partnering with Value Hybrid and bringing to market a best-in-class connected solution that will help to increase safety, improve efficiency, and enhance compliance, which impacts millions of people across the globe.”

Fortune Brands and Value Hybrid are uniquely situated to transform workplaces from mechanical to connected LOTO and expand the market for these solutions worldwide.

“We are pleased to be partnering with such a respected brand as Master Lock. This partnership enables us to tap into Master Lock’s deep experience in LOTO solutions, in addition to their capabilities and established global customer base,” said Value Hybrid Managing Director Alfredo de la Fuente. “We are looking forward to how we can bring our software and capabilities together to produce comprehensive cLOTO solutions that will help accelerate the digitization of critical safety processes and procedures.”

LOTO solutions can improve worker safety by helping to prevent potentially dangerous equipment from releasing hazardous energy while employees are working with machinery. LOTO compliance is a common workplace challenge; in the U.S. alone, LOTO was the 6th most frequently cited violation following inspections of worksites by federal OSHA officials for all industries in 2023*, with millions of dollars in LOTO-related fines assessed on an annual basis.

Fortune Brands believes there is a significant and growing long-term opportunity in the U.S. and around the globe as companies seek to automate and provide real-time tracking of processes and procedures that will improve safety in the work environment and make it more secure in the future. Master Lock is well-positioned as customers become ever-more safety focused and seek an effective migration path from more traditional, mechanical solutions to cLOTO solutions.

Value Hybrid was founded in 2020 and is based in Madrid, Spain. Fortune Brands has taken a minority ownership stake in Value Hybrid in support of the strategic partnership and to accelerate the growth of the business. Master Lock will have exclusive rights in North America, the largest global market for LOTO, to market a customized, Master Lock branded cLOTO software solution integrated with its connected padlock hardware. Master Lock will also have non-exclusive rights to sell its solution in all markets outside of North America. Master Lock will work with Value Hybrid to implement a comprehensive roadmap of innovative cLOTO features and functionality to address the needs of its commercial safety customers worldwide.

*According to OSHA

About Fortune Brands Innovations

Fortune Brands Innovations, Inc. (NYSE: FBIN), headquartered in Deerfield, Ill., is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. The Company’s growing portfolio of brands includes Moen, House of Rohl, Aqualisa, Emtek, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe, Yale residential and August. To learn more about FBIN, its brands and environmental, social and governance (ESG) commitments, visit www.FBIN.com.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains certain “forward-looking statements” made within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, including regarding the anticipated benefits of the Value Hybrid partnership. Statements preceded by, followed by or that otherwise include the words “believes”, “positioned”, “expects”, “estimates”, “plans”, “look to”, “outlook”, “opportunity,” “confident,” “intend”, and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management. Although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those indicated in such statements, including but not limited to: unanticipated difficulties or expenditures relating to the Value Hybrid partnership, including, without limitation, difficulties that result in the failure to realize expected benefits, efficiencies and cost savings from the partnership within the expected time period (if at all); legal proceedings, judgments or settlements following the announcement of the proposed transaction; disruptions of our or Value Hybrid’s current plans, operations and relationships with customers, suppliers, distributors, business partners and regulators caused by the announcement of the transaction; potential difficulties in employee retention due to the announcement of the transaction; general business and economic conditions; our reliance on the North American repair and remodel and new home construction activity levels; our reliance on key customers and suppliers; our ability to maintain our strong brands and to develop innovative products while maintaining our competitive positions; our ability to improve organizational productivity and global supply chain efficiency; our ability to obtain raw materials and finished goods in a timely and cost-effective manner; the impact of sustained inflation, including global commodity and energy availability and price volatility; our ability to attract and retain qualified personnel and other labor constraints; our ability to achieve the anticipated benefits of our strategic initiatives; our ability to successfully execute our partnership strategy; and the other factors discussed in our securities filings, including in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 30, 2023, filed with the Securities and Exchange Commission. The forward-looking statements included in this release are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this release.

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