Spectrum Brands is out of the hardware business as the company said it has sold its hardware and home improvement segment to Assa Abloy.
The deal, valued at $4.3 billion, will simplify Spectrum’s business around its three remaining business units that include home and personal care, home and garden and global pet care. This, company officials said, will allow Spectrum management to devote resources and prioritize innovation and accelerate long-term sustainable growth.
“We believe this transaction demonstrates the tremendous value of Spectrum Brands as an owner and steward of our businesses and places the company in a strong position for the future by allowing us to further reduce our leverage levels, and enhance our capital allocation strategy,” said David Maura, CEO of Spectrum Brands.
He added, “Our remaining business will be more focused, allowing us to prioritize innovation to accelerate organic growth and pursue synergistic acquisitions to further drive value creation in pet care and home and garden while continuing to look for strategic and organic ways to enhance the value of home and personal care.”