Spectrum Brands and the DOJ Reach a Settlement Regarding the HHI Acquisition
May 05 2023 - 7:40PM
Business Wire
Spectrum Brands Holdings, Inc. (NYSE: SPB, “Spectrum Brands” or
the “Company”), a leading global branded consumer products and home
essentials company focused on driving innovation and providing
exceptional customer service, today announced that it has agreed to
a stipulation with the U.S. Department of Justice (the “DOJ”) to
settle the DOJ’s challenge of ASSA ABLOY’s acquisition of the
Company’s Hardware and Home Improvement segment (“HHI”).
As previously announced, on September 8, 2021, Spectrum Brands
announced an agreement to sell HHI to ASSA ABLOY for $4.3 billion
in cash, subject to customary adjustments. On September 15, 2022,
the DOJ filed a lawsuit to block the closing of the HHI sale. On
December 2, 2022, ASSA ABLOY announced an agreement to sell its
Emtek and the Smart Residential Business in the U.S. and Canada to
Fortune Brands, a strong and experienced player in the home
hardware and security markets.
David Maura, the Company’s Chief Executive Officer, said, “We
are very pleased to have reached agreement with the DOJ, which is a
critical milestone toward putting HHI in the hands of ASSA ABLOY,
who we believe will enhance HHI’s ability to bring consumers better
innovation and product choice.”
The closing of the transaction is subject to satisfaction of
customary closing conditions. 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, 2023.
About Spectrum Brands
Spectrum Brands Holdings is a home-essentials company with a
mission to make living better at home. We focus on delivering
innovative products and solutions to consumers for use in and
around the home through our trusted brands. We are a leading
supplier of specialty pet supplies, lawn and garden and home pest
control products, personal insect repellents, shaving and grooming
products, personal care products, and small household appliances.
Helping to meet the needs of consumers worldwide, Spectrum Brands
offers a broad portfolio of market-leading, well-known and widely
trusted brands including Tetra®, DreamBone®, SmartBones®, Nature’s
Miracle®, 8-in-1®, FURminator®, Healthy-Hide®, Good Boy®, Meowee!®,
OmegaOne®, Spectracide®, Cutter®, Repel®, Hot Shot®, Rejuvenate®,
Black Flag®, Liquid Fence®, Remington®, George Foreman®, Russell
Hobbs®, Black+Decker®, PowerXL®, Emeril Lagasse®, and Copper Chef®.
For more information, please visit www.spectrumbrands.com. Spectrum
Brands – A Home Essentials Company™.
Forward Looking Statements
Certain matters discussed in this press release may be
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. We have tried, whenever
possible, to identify these statements by using words like
“future,” “anticipate”, “intend,” “plan,” “estimate,” “believe,”
“expect,” “project,” “forecast,” “could,” “would,” “should,”
“will,” “may,” and similar expressions of future intent or the
negative of such terms. These statements are based upon our current
expectations of future events and projections and are subject to a
number of risks and uncertainties, many of which are beyond our
control and some of which may change rapidly, actual results or
outcomes may differ materially from those expressed or implied
herein, and you should not place undue reliance on these
statements. Important factors and uncertainties that could cause
our actual results to differ materially from those expressed or
implied herein include, without limitation: (1) the risk that the
court fails to enter of the agreed stipulation, (2) the risk that
ASSA ABLOY and Fortune fail to satisfy the conditions to closing of
the divestiture transaction and / or otherwise fail to consummate
the divestiture transaction, (3) the ability to consummate the
announced transaction on the expected terms and within the
anticipated time period, or at all, which is dependent on the
parties’ ability to satisfy certain closing conditions and our
ability to realize the benefits of the transaction, including
reducing the leverage of the Company, invest in the organic growth
of the Company, fund any future acquisitions, returning capital to
shareholders, and/or maintain its quarterly dividends; (4) the risk
that regulatory approvals that are required to complete the
proposed transaction may not be received, may take longer than
expected or may impose adverse conditions; (5) our ability to
realize the expected benefits of such transaction and to
successfully separate the divested business; and (6) the other risk
factors set forth in the securities filings of Spectrum Brands
Holdings, Inc. and SB/RH Holdings, LLC, including our fiscal 2022
Annual Report and subsequent Quarterly Reports on Form 10-Q.
Some of the above-mentioned factors are described in further
detail in the sections entitled “Risk Factors” in our annual and
quarterly reports, as applicable. You should assume the information
appearing in this press release is accurate only as of the date
hereof, or as otherwise specified, as our business, financial
condition, results of operations and prospects may have changed
since such date. Except as required by applicable law, including he
securities laws of the United States and the rules and regulations
of the United States Securities and Exchange Commission, we
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise, to reflect actual results or changes in
factors or assumptions affecting such forward-looking
statements.
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Faisal Qadir 608-278-6207
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