Spectrum Brands settles with DOJ regarding segment sale

Chicago, May 5 – Spectrum Brands Holdings, Inc. reached a settlement regarding the sale of its hardware and home improvement segment to Assa Abloy, according to a press release.

The company reached an agreement in September 2021 to sell the segment to Assa Abloy for $4.3 billion in cash, as previously reported.

Proceeds, the company said in an earnings conference call, were to be used to reduce debt and lower leverage.

However, there was doubt that the transaction would go through when the U.S. Department of Justice filed a lawsuit on Sept. 15, 2022 blocking the sale.

On Dec. 2, 2022, Assa Abloy agreed to sell its Emtek and the smart residential business in the United States and Canada to Fortune Brands.

Fortune Brands is buying those businesses for an $800 million acquisition price on a cash-free, debt-free basis.

Spectrum has agreed to a stipulation with the DOJ to settle the challenge that will allow the acquisition to close.

Approval of the Mexican competition authority is the only outstanding regulatory approval. The company continues to expect to close this transaction on or prior to June 30.

Spectrum is a Middleton, Wis.-based consumer products company.

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