ASSA ABLOY has announced that it has reached a settlement agreement with the US Department of Justice (DOJ), related to ASSA ABLOY’s acquisition of Spectrum Brands’ Hardware and Home Improvement division (HHI).
According to the company, the settlement will put an end to the trial proceedings of the District Court for the District of Columbia.
On 8 September 2021, ASSA ABLOY announced it had signed an agreement to acquire the HHI division of Spectrum Brands for a purchase price of MUSD 4,300 on a cash and debt-free basis. On 15 September 2022, the DOJ announced that it will seek to block the proposed acquisition of HHI.
On 1 December 2022, ASSA ABLOY announced that it had entered into binding agreements with Fortune Brands for the divestment of Emtek and the Smart Residential business in the US and Canada to fully resolve all the alleged competitive concerns surrounding the proposed acquisition of HHI.
In connection with the settlement and pursuant to the Proposed Final Judgment filed with the court, ASSA ABLOY will proceed with the divestment of Emtek and the Smart Residential business in the US and Canada to Fortune Brands.
Following this settlement, the HHI acquisition remains subject to customary closing conditions, including approval of the Mexican competition authority, which is the only outstanding regulatory condition. Closing of the transaction is expected by the end of June 2023 at the latest.
“The settlement with DOJ is an important milestone towards closing of the HHI acquisition, which will empower us to increase investments in the residential segments, realize the synergies of MUSD 100 and strengthen our product offering for the benefit of consumers,” said Nico Delvaux, President and CEO of ASSA ABLOY.