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Assa Abloy buys Spectrum home improvement business for $4.3 bln

Mount Equity Group Tokyo Japan > News > Business > Assa Abloy buys Spectrum home improvement business for $4.3 bln

The logo for Spectrum Brands Holdings, Inc., is displayed screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 6, 2018. REUTERS/Brendan McDermid

Sept 9 (Reuters) – U.S. lockmaker Spectrum Brands Holdings Inc (SPB.N) has agreed to sell its hardware and home improvement division to Swedish rival Assa Abloy (ASSAb.ST) for $4.3 billion in cash.

Shares in Assa Abloy rose 6.2% in early trade on Thursday, buoyed by the deal and the prospects for expansion beyond its commercial business in North America into the residential market.

Assa, the world’s biggest lockmaker, expects operating earnings benefits from the deal to reach around $100 million in 2025, it said in a statement.

The deal, expected to close in the fourth quarter, would immediately add about 14% to Assa’s consolidated sales, which were 88 billion crowns ($10.2 billion) in 2020.

“In summary, a great addition to Assa Abloy Group; really the missing piece…

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