According to Reuters, Assa Abloy is set to sell its Yale and Emtek lock brands, and U.S. and Canadian residential businesses to Fortune Brands Home & Security 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. Department of Justice 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. that makes residential door hardware, as the deal signed last year could lead to higher prices.
"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 Assa Abloy President and CEO Nico Delvaux.
