ASSA ABLOY sells Emtek and the Smart Residential business in the U.S. and Canada in furtherance of the proposed acquisition of the Hardware and Home Improvement division
ASSA ABLOY has finalized binding agreements with Fortune Brands Home & Security, Inc. for the sale of Emtek and its Smart Residential business in the U.S. and Canada. This $800 million divestiture is aimed at addressing competitive concerns raised by the U.S. Department of Justice regarding ASSA ABLOY's $4.3 billion acquisition of Spectrum Brands' Hardware and Home Improvement division. The sale is expected to close in Q2 2023, contingent upon successful defense against DOJ objections. The divested businesses generated about $350 million in sales in 2021.
- Sale of Emtek and Smart Residential business for $800 million addresses DOJ concerns.
- The divestiture allows ASSA ABLOY to proceed with the HHI acquisition without regulatory hindrances.
- The divested businesses generated significant sales ($350 million in 2021), indicating a loss of revenue.
- The acquisition's success is dependent on ongoing legal defenses against the DOJ.
STOCKHOLM, Dec. 2, 2022 ASSA ABLOY has entered into binding agreements with Fortune Brands Home & Security, Inc. (NYSE: FBHS) or ("Fortune Brands") for the sale of Emtek and the Smart Residential business in the U.S. and Canada to fully resolve all the alleged competitive concerns surrounding the proposed acquisition of the Hardware and Home Improvement division ("HHI") of Spectrum Brands.
On September 8, 2021, ASSA ABLOY announced it had signed an agreement to acquire the HHI division of Spectrum Brands (NYSE: SPB) for a purchase price of MUSD 4,300 on a cash and debt free basis. On September 15, 2022, the U.S. Department of Justice ("DOJ") announced that it will seek to block the proposed acquisition of HHI.
ASSA ABLOY has entered into binding agreements with Fortune Brands for the sale of Emtek and the Smart Residential business in the U.S. and Canada to fully resolve all the alleged competitive concerns surrounding the proposed acquisition of HHI. Residential businesses outside of the U.S. and Canada are not in scope to be divested.
These businesses represented sales of about MUSD 350 in 2021.The selling price for the divested business is MUSD 800 on a cash and debt free basis.
"With Fortune Brands our excellent US and Canadian residential businesses will get a good and strong home with an experienced owner. While keeping these residential businesses in the US 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.
For more information, please contact:
Nico Delvaux, President and CEO, tel. no: +46 8 506 485 82
Erik Pieder, CFO and Executive Vice President, tel. no: +46 8 506 485 72
Björn Tibell, Head of Investor Relations, tel. no: +46 70 275 67 68, e-mail: bjorn.tibell@assaabloy.com
About ASSA ABLOY
The ASSA ABLOY Group is the global leader in access solutions. The Group operates worldwide with 51,000 employees and sales of SEK 95 billion. The Group has leading positions in areas such as efficient door openings, trusted identities and entrance automation. ASSA ABLOY's innovations enable safe, secure and convenient access to physical and digital places. Every day, we help billions of people experience a more open world.
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