Assa Abloy considers selling Yale, Emtek brands to win U.S. approval for Spectrum deal -sources
07/10/2022 11:44
By Svea Herbst-Bayliss and Emma-Victoria Farr
NEW YORK/FRANKFURT, Oct 7 (Reuters) - Assa Abloy AB
ASSAb.ST is considering options including selling its Yale and
Emtek locks brands as it seeks to overturn U.S. antitrust
opposition to its planned purchase of Spectrum's Hardware and
Home Improvement (HHI), three sources familiar with the matter
said.
Stockholm-listed Assa Abloy, the world's leading lockmaker
with a market value of 231.56 billion Swedish crown ($20.79
billion), is working with an advisor to find a buyer for the
brands, the sources said, speaking on condition of anonymity.
It comes just weeks after the U.S. Department of Justice
(DoJ) sued to block the company's proposed $4.3 billion deal to
buy a unit of Spectrum Brands Holdings Inc SPB.N that makes
security, plumbing and builders' hardware products.
The two brands that Assa Abloy is looking to sell could be
valued at about $1 billion-$2 billion, the sources said.
Potential buyers may include private equity firms, two
of the sources said.
The DoJ sued to block the deal in September, saying that a
merger of Assa Abloy and the HHI unit would give the Swedish
company a "near monopoly" share of the mechanical door lock
market and could lead to higher prices and reduced innovation
for homeowners who want to buy premium mechanical door hardware
or smart locks.
Spectrum's HHI unit owns the Baldwin and Kwikset lock and
lock hardware brands.
Assa Abloy and Spectrum said last month that they "strongly
disagree" with the Justice Department and would "vigorously
contest" the suit.
Assa Abloy declined to comment on the sale talks.
"As you would know we informed the markets in September that
we intend to dispute the DoJ's complaint in relation to our
proposed acquisition of HHI. We are now in the process of
setting together the formal appeal of their complaint," said a
spokesperson for Assa Abloy.
The deal between Assa Abloy and the HHI unit was announced
last year.
($1 = 11.1399 Swedish crowns)
(Reporting by Svea Herbst-Bayliss in New York and Emma-Victoria
Farr in Frankfurt; Editing by Anirban Sen and Susan Fenton)
((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))