ASSA ABLOY issues official response to U.S. Department of Justice

WASHINGTON – Following a complaint filed by the U.S. Department of Justice (DoJ) blocking ASSA ABLOY's acquisition of Spectrum Brands' Holding Hardware and Home Improvement division, the company issued its response to the DoJ on Oct. 14, 2022.

ASSA ABLOY confirmed that it has initiated the sales process for Emtek Products and their Smart Residential (Yale) business in the U.S. and Canada. ASSA ABLOY said that it is “vigorously contesting” the DoJ effort in court and added that divestiture of these business should solve the problems the DoJ has with its Spectrum Brands acquisition.

Emtek Products is a door and cabinet hardware manufacturer based in California and acquired by ASSA ABLOY in 1999. Yale is one of the worlds oldest lock companies in the world, ASSA ABLOY acquired their security subsidiaries in 2000 which produces the Smart Residential line of products (smart locks, alarms, etc).

"We believe strongly in the acquisition of HHI as we together will increase investments in the residential segments and strengthen our combined product offering for the benefit of consumers. The proposed remedies eliminate all competitive concerns alleged by the DOJ," Nico Delvaux, President and CEO of ASSA ABLOY said in a statement issued by the company late Sunday evening.

ASSA ABLOY went on to state, “The proposed divestitures are dependent on our successful defense against the DOJ regarding the planned acquisition of HHI. ASSA ABLOY will remain fully committed to these excellent businesses during the process and all the businesses will continue to operate as normal.”

SSN reported in September on the lawsuit filed by the DoJ with Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division saying at the time, “Competition between these two companies, which are two of the three largest companies in an already concentrated industry, has benefited American consumers in the form of lower prices and better quality. That important competition would be extinguished if this merger were allowed to proceed to the detriment of Americans.”

As of the writing of this article, the DoJ had not yet issued a formal response to the offer made by ASSA ABLOY.