ASSA ABLOY statement on the U.S. Department of Justice´s opposition to the acquisition of the Hardware and Home Improvement ("HHI") division of Spectrum Brands

Rhea-AI Summary

ASSA ABLOY announced its intent to contest the U.S. Department of Justice's (DOJ) move to block its acquisition of the HHI division of Spectrum Brands (NYSE:SPB) for MUSD 4,300. The companies assert that the merger will bolster investment in residential segments and enhance their product offerings. ASSA ABLOY's CEO, Nico Delvaux, emphasizes the expected innovation and consumer benefits from the merger. The acquisition agreement has been extended to June 30, 2023, as both parties remain committed to overcoming regulatory challenges.

Positive

• The acquisition aims to boost investments in residential segments.
• Combining ASSA ABLOY's access solutions with HHI's expertise is expected to enhance product offerings.
• The merger is anticipated to drive innovation for consumer benefits.

Negative

• The DOJ's opposition could delay the acquisition timeline.
• Regulatory scrutiny may increase costs and legal expenses.

STOCKHOLM, Sept. 15, 2022 /PRNewswire/ -- The U.S. Department of Justice ("DOJ") has announced that it will seek to block ASSA ABLOY´s proposed acquisition of the HHI division of Spectrum Brands. ASSA ABLOY and Spectrum Brands strongly disagree with the Department of Justice's characterization of the proposed transaction, and will vigorously contest in court this effort by the DOJ to oppose the transaction.

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.

"We believe strongly in the acquisition of HHI as we together will increase investments in the residential segments and strengthen our combined product offering for the benefit of consumers," says Nico Delvaux, President and CEO of ASSA ABLOY.

This transaction will bring together ASSA ABLOY's strength in access solutions and HHI's complementary deep talent and experience base in residential products, which will be enhanced by ASSA ABLOY's culture of driving technology and innovation. ASSA ABLOY and Spectrum Brands are convinced that the transaction will accelerate innovation and deliver significant benefits to consumers, and refute any suggestion that the proposed transaction would harm competition.

ASSA ABLOY and Spectrum Brands remain confident in the merits of this transaction and will jointly defend it. ASSA ABLOY and Spectrum Brands are committed to completing the transaction and are confident that they will prevail in litigation.

As previously disclosed, ASSA ABLOY and Spectrum Brands have agreed to extend their agreement for ASSA ABLOY to acquire HHI to June 30, 2023.  

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
ann.holmberg@assaabloy.com

This is information that ASSA ABLOY AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 17.10 CET on 15 September 2022.

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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https://news.cision.com/assa-abloy/r/assa-abloy-statement-on-the-u-s--department-of-justice-s-opposition-to-the-acquisition-of-the-hardwa,c3631863

The following files are available for download:

https://mb.cision.com/Main/7333/3631863/1627358.pdf

Press release (PDF)

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SOURCE ASSA ABLOY

FAQ

What is the status of the ASSA ABLOY and Spectrum Brands acquisition of HHI?

The acquisition is currently opposed by the U.S. Department of Justice, and ASSA ABLOY plans to contest this in court.

What is the value of the ASSA ABLOY acquisition of HHI?

The acquisition is valued at MUSD 4,300 on a cash and debt-free basis.

What are the expected benefits of the ASSA ABLOY acquisition of HHI?

The merger is expected to enhance product offerings, increase investments in residential segments, and drive innovation.

When has the acquisition agreement been extended to?

The acquisition agreement has been extended to June 30, 2023.