NEW HAVEN, CT – ASSA ABLOY has entered into binding agreements with Fortune Brands Home & Security, Inc. for the sale of Emtek and the Smart Residential business in the U.S. and Canada. The sale is to fully resolve all the alleged competitive concerns surrounding the proposed acquisition of the Hardware and Home Improvement division of Spectrum Brands. Residential businesses outside of the U.S. and Canada are not in scope to be divested.
On September 8, 2021, ASSA ABLOY announced it had signed an agreement to acquire the HHI division of Spectrum Brands. On September 15, 2022, the U.S. Department of Justice announced that it will seek to block the proposed acquisition of HHI.
“With Fortune Brands our excellent U.S. and Canadian residential businesses will get a good and strong home with an experienced owner. 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,” says Nico Delvaux, president and CEO of ASSA ABLOY.
The divestiture is dependent on the successful defense against the DOJ regarding the planned acquisition of HHI. ASSA ABLOY will remain fully committed to these well- performing businesses during the process and all the businesses will continue to operate as normal.
Both the proposed acquisition of HHI and the divestiture are expected to close during the second quarter 2023 after the successful defense against the DOJ.