The Department of Justice announced today that it has reached a settlement in its litigation related to ASSA ABLOY AB’s (ASSA ABLOY) proposed $4.3 billion acquisition of Spectrum Brand Holding Inc.’s Hardware and Home Improvement division. Proposed deal requires ASSA ABLOY to divest assets as a condition to completing ASSA ABLOY’s transaction with Spectrum Brands Holdings, Inc.
Under the terms of the proposed agreement, which is subject to court approval, ASSA ABLOY must sell assets to Fortune Brands Innovations, Inc. that are designed to enable Fortune to compete in the premium mechanical door hardware and smart lock markets. used in residential and multifamily buildings. These assets include ASSA ABLOY’s EMTEK and Schaub premium mechanical door hardware businesses, its Yale and August residential smart lock businesses in the United States and Canada, and other assets for multifamily smart lock applications in the United States and Canada. Additional terms of the agreement include: expanding Fortune’s intellectual property and marketing rights in smart locks, the inclusion of additional residential mechanical lock assets, the appointment of a supervisory administrator, a penalty provision for the delayed transfer of a manufacturing facility and the ability, under certain circumstances, for the Department to seek additional relief later if the divestiture fails to maintain the intensity of competition that existed before the merger for smart locks used in residential and multifamily buildings.
ASSA ABLOY AB is a publicly traded Swedish public limited company headquartered in Stockholm, Sweden. It sells its residential door hardware products in the United States under the August, EMTEK, and Yale brands.
Spectrum Brands Holdings Inc. is a publicly traded Delaware corporation headquartered in Middleton, Wisconsin. It sells its residential hardware products in the United States under the Baldwin and Kwikset brands.
Fortune Brands Innovation, Inc. is a publicly traded Delaware corporation headquartered in Deerfield, Illinois. It markets various home products under the brands Moen, Fiberon and MasterLock, among others.
As required by the Tunney Act, the proposed agreement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments on the proposed settlement during a 60-day comment period to the Chief of the Defense, Industrial and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 8700 , Washington, DC 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may render final judgment determining that it is in the public interest.
The claims resolved by the settlement are only allegations and liability has not been determined.