ASSA ABLOY and Spectrum Brands Holdings (NYSE: SPB) reached a settlement on May 5 with the U.S. Justice Department, which had attempted to block ASSA ABLOY’s proposed $4.3 billion purchase of Spectrum's hardware and home improvement (HHI) division.
In September, the DOJ filed a lawsuit to block the closing of the HHI sale, stating the deal could lead to higher prices for consumers. Then in December, ASSA ABLOY announced an agreement to sell its Emtek and the Smart Residential Business in the United States and Canada to Fortune Brands, a player in the home hardware and security markets, in a bid to resolve the U.S. antitrust issues.
ASSA ABLOY manufacturers Yale, August and EMTEK brands; Spectrum's division makes the Baldwin and Kwikset brands.
Under the settlement, ASSA ABLOY will proceed with the divestment of its Emtek and the Smart Residential business in the U.S. and Canada to Fortune Brands, the company said in a statement. In a separate announcement, Fortune said it will go ahead with the purchase of the businesses for $800 million.
Both ASSA ABLOY and Spectrum said they expect the deal to close by the end of June.