Assa Abloy signs $800m deal to sell Emtek and Yale businesses to Fortune Brands By Reuters
© Reuters. FILE PHOTO: An Assa Abloy lock is displayed at a store in Riga, Latvia September 19, 2013. REUTERS/Ints Kalnins
(Reuters) – Assa Abloy (OTC:) AB said on Friday it would sell its Yale and Emtek lock brands, as well as its U.S. and Canadian residential businesses to Fortune Brands (NYSE:) Home & Security as part of a $800 million cash deal, as it seeks to overturn US antitrust opposition to its purchase of a Spectrum unit.
Earlier this year, the US Department of Justice filed a lawsuit to block a proposed $4.3 billion deal by Assa Abloy, the world’s largest lock maker, to buy the hardware and hardware division. home improvement (HHI) from Spectrum Brands Holdings (NYSE:) Inc, which makes hardware for residential doors, 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 businesses in the United States to resolve U.S. antitrust concerns that are delaying a planned acquisition.
“While it would have been preferable to retain these residential businesses in the United States and Canada, we are confident that we have now fully eliminated all of the competition concerns alleged by the DOJ and that the acquisition of HHI is in the pipeline. long-term interest of our shareholders,” Assa Abloy Chairman and CEO Nico Delvaux said in a statement Friday.
Assa Abloy said residential businesses outside of the United States and Canada are not likely to be divested.
“The sale of these strong businesses (…) will fully and completely resolve every conceivable competition issue and further benefit consumers by enabling Fortune Brands to bring even stronger competition to all segments of the home security market. “, Spectrum said in a separate statement.