ASSA ABLOY has announced that it has entered into binding agreements with Fortune Brands Home & Security, Inc. for the sale of its Emtek and Smart Residential business in the US and Canada for $800 million.
The company said that the deal fully resolves all the alleged competitive concerns surrounding the proposed acquisition of the Hardware and Home Improvement division (HHI) of Spectrum Brands.
On 8 September 2021, ASSA ABLOY announced it had signed an agreement to acquire the HHI division of Spectrum Brands for $4.3 billion. However, on 15 September 2022, the US Department of Justice (DOJ) announced that it will seek to block the proposed acquisition of HHI.
“With Fortune Brands our excellent US and Canadian residential businesses will get a good and strong home with an experienced owner. While keeping these residential businesses in the US and Canada would have been preferred, we are confident that we have now fully eliminated all competitive concerns alleged by the DOJ and that the acquisition of HHI is in the long-term interest of our shareholders,” said Nico Delvaux, President and CEO of ASSA ABLOY.
According to the company, the divestiture is dependent on the successful defense against the DOJ regarding the planned acquisition of HHI. ASSA ABLOY says it will remain fully committed to these businesses during the process and that they will continue to operate as normal.
Both the proposed acquisition of HHI and the divestiture are expected to close during the second quarter 2023, if defended successfully against the DOJ.