Spectrum Brands Files Answer to the DOJ’s Complaint to Block the Sale of its Hardware and Home Improvement Division to ASSA ABLOY
Spectrum Brands Holdings, Inc. (NYSE: SPB) has filed its response to the U.S. Department of Justice's (DOJ) lawsuit aimed at blocking its sale of the Hardware and Home Improvement (HHI) segment to ASSA ABLOY. The Company asserts that the transaction will enhance competition in the residential security market. Spectrum Brands contends that prior proposals to address DOJ's antitrust concerns were dismissed without valid reasons. They remain confident that, with proposed divestitures considered, the lawsuit will be overturned in court, allowing the transaction to proceed.
- Spectrum Brands is confident in enhancing competition in the residential security market post-transaction.
- Proposed divestitures aim to resolve DOJ's antitrust concerns.
- The DOJ's lawsuit could delay the completion of the HHI segment sale to ASSA ABLOY.
Contrary to the DOJ’s inaccurate position, following the closing of the transaction competition in the residential security market will be enhanced, as HHI will be ideally positioned to better serve customers with more innovative products and customers will have more product choice across competitors.
Prior to the lawsuit, the Company and ASSA ABLOY had made numerous proposals to address the DOJ’s purported antitrust concerns—each of which were rejected without a valid basis—and ASSA ABLOY has initiated a sales process to divest certain businesses to fully resolve any alleged competitive concerns surrounding the acquisition of HHI.
The DOJ is incorrect that the transaction—before taking into account the proposed divestitures—would violate antitrust laws. With the proposed divestitures considered, there is no basis in law or in fact for the DOJ’s meritless claims. “In essence, the Government is attempting to circumvent decades of established practice and merger case law precedent,”
The Company is looking forward to its day in court and is confident that the court will review the merits of the transaction—including the proposed divestiture—and agree that the DOJ’s complaint should be rejected.
Forward-Looking Statements
We have made, implied or incorporated by reference certain forward-looking statements in this press release. All statements, other than statements of historical facts included or incorporated by reference in this document, without limitation, statements or expectations regarding the HHI transaction, the related lawsuit and the prospects thereof are forward-looking statements. When used in this document, the words future, anticipate, seeks, intend, plan, envision, estimate, believe, belief, expect, project, forecast, outlook, goal, objective, target, could, would, will, can, should, may and similar expressions are also intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Since these forward-looking statements are based upon our current expectations of future events and projections and are subject to a number of risks and uncertainties, many of which are beyond our control and some of which may change rapidly, actual results or outcomes may differ materially from those expressed or implied herein, and you should not place undue reliance on these statements. Except as required by applicable law, including the securities laws of
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