Assa Abloy AB, the Swedish conglomerate whose product offerings include locks, doors, gates and entrance automation, has sold its door and cabinet hardware-manufacturing subsidiary Emtek Products and its Smart Residential business unit in the U.S. and Canada to Fortune Brands, the companies announced.
The transaction, whose terms were not disclosed, was undertaken to resolve alleged competitive concerns surrounding the proposed 2021 acquisition by Assa Abloy of the Hardware and Home Improvement (HHI) division of Spectrum Brands. Shortly afterward, the U.S. Dept. of Justice announced that it would seek to block the proposed acquisition. The divestiture of Emtek and Smart Residential is dependent on the successful defense against the DOJ regarding the planned acquisition of HHI, corporate officials said.
“With Fortune Brands, our U.S. and Canadian residential businesses will get a good and strong home with an experienced owner,” said Nico Delvaux, president and CEO of Stockholm-based Assa Abloy. “While keeping these residential businesses in the U.S. and Canada would have been preferred, we’re confident that we have now fully eliminated all competitive concerns alleged by the DOJ.”
Assa Abloy “will remain fully committed” to the businesses being divested, and the businesses will continue to operate as normal, the company said. Both the proposed acquisition of HHI and the divestiture of Emtek Products and Smart Residential are expected to close during the second quarter 2023, after a successful defense against the DOJ, the company added.