International. Assa Abloy announced binding agreements with Fortune Brands Home & Security, Inc . for the sale of Emtek and the Smart Residential business in the U.S. and Canada to address alleged competitive concerns surrounding the proposed acquisition of Spectrum Brands' hardware and home improvement ("HHI") division.
It should be noted that residential businesses outside the U.S. and Canada are not within the scope of the sale.
On September 8, 2021, Assa Abloy disclosed that it had signed an agreement to acquire the HHI division of Spectrum Brands, for a purchase price of US$4.3 billion in cash and debt-free. On September 15, 2022, the United States Department of Justice ("DOJ") announced that it will seek to block the proposed acquisition of HHI.
Emtek and the Smart Residential business accounted for sales of around US$350 million in 2021. The sale price of the divested business is $800 million in cash and debt-free.
"With Fortune Brands, our excellent U.S. and Canadian residential businesses will get a good, solid home with an experienced homeowner. While it would have been preferable to keep these residential businesses in the U.S. and Canada, we are confident that we have now completely eliminated all competitive concerns. that the acquisition of HHI is in the long-term interest of our shareholders," says Nico Delvaux, Chairman and Chief Executive Officer of Assa Abloy.
The sale depends on the successful defense against the DOJ regarding the planned acquisition of HHI. Assa Abloy said she will remain fully committed to these good performing businesses during the process and all businesses will continue to operate normally.
Both the proposed HHI acquisition and divestiture are expected to close during the second quarter of 2023 following the defense against the Department of Justice.
