©Reuters. FILE PHOTO: An Assa Abloy lock is displayed at a shop in Riga, Latvia September 19, 2013. REUTERS/Ints Kalnins
(Reuters) – Assa Abloy (OTC:) AB announced on Friday that it has sold its Yale and Emtek locking brands, as well as its U.S. and Canadian consumer businesses, to Fortune Brands (NYSE:) Home & Security in an $800 million cash deal sell it seeks to break US antitrust resistance to the purchase of a Spectrum unit.
Earlier this year, the US Department of Justice had sued to block a $4.3 billion deal by Assa Abloy, the world’s leading locksmith maker, to buy Spectrum Brands Holdings’ (NYSE:) Hardware and Home Improvement (HHI) division. Inc. makes front door hardware as the deal signed last year could result in higher prices.
Reuters reported in October that Assa Abloy was working to sell its Emtek and Smart Residential businesses in the United States in a bid to resolve US antitrust issues holding up a proposed takeover.
“While it would have been desirable to keep these residential real estate companies in the U.S. and Canada, we are confident that we have now fully addressed any competition concerns raised by the DOJ and that the acquisition of HHI is in the long-term interests of our shareholders.” Nico Delvaux , President and Chief Executive Officer of Assa Abloy, said in a statement on Friday.
Assa Abloy said the housing companies will not be divested outside of the United States and Canada.
“The sale of these strong businesses…will fully and completely address any possible competitive concerns and further benefit consumers by enabling Fortune Brands to bring even greater competition to all segments of the home security market,” said Spectrum in a separate statement.