Assa Abloy AB has announced that it will sell its Yale and Emtek lock brands, as well as its residential businesses in the United States and Canada, to Fortune Brands Home & Security in an all-cash $800 million transaction as it seeks to overcome antitrust opposition in the United States to its acquisition of a unit of Spectrum.
The US Justice Department filed a lawsuit earlier this year to block a $4.3 billion proposed deal by Assa Abloy, the world’s largest lockmaker, to buy the hardware and home improvement (HHI) division of Spectrum Brands Holdings Inc, which manufactures residential door hardware, because the deal signed last year could lead to higher prices.
According to media reports in October, Assa Abloy was working to sell its Emtek and smart residential businesses in the United States in order to resolve antitrust issues that were impeding a planned acquisition.
“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.
According to Assa Abloy, the residential businesses outside of the United States and Canada will not 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.
(Adapted from USNews.com)