Assa Abloy locks in $800 mln deal to sell Emtek, Yale businesses to Fortune Brands
02/12/2022 07:51
Dec 2 (Reuters) - Assa Abloy AB ASSAb.ST said on
Friday it will sell its Yale and Emtek lock brands, and U.S. and
Canada residential businesses to Fortune Brands Home & Security
FBHS.N in an $800 million all-cash deal, as it seeks to
overturn U.S. antitrust opposition to its purchase of a unit of
Spectrum.
Earlier this year, the U.S. Justice Department had sued to
block a $4.3-billion proposed deal by Assa Abloy, the world's
No.1 lockmaker, to buy the hardware and home improvement (HHI)
division of Spectrum Brands Holdings Inc SPB.N that makes
residential door hardware, as the deal signed last year could
lead to higher prices.
Reuters had reported in October that Assa Abloy was working
to sell its Emtek and smart residential business in the United
States to resolve U.S. antitrust issues that are holding up a
planned acquisition. urn:newsml:reuters.com:*:nL1N31F2MG
"While keeping these residential businesses in the U.S. 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," Assa Abloy President and Chief Executive
Officer Nico Delvaux said in a statement on Friday.
Assa Abloy said the residential businesses outside of the
United States and Canada are not in scope to be divested.
"The sale of these strong businesses... will fully and
completely resolve any conceivable competitive concerns and will
further benefit consumers by enabling Fortune Brands to bring
even stronger competition to all segments of the residential
security market," Spectrum said in a separate statement.
(Reporting by Rahat Sandhu and Jahnavi Nidumolu in Bengaluru;
Editing by Rashmi Aich)
((Rahat.Sandhu@thomsonreuters.com;))