Shares of Spectrum Brands (NYSE: SPB) soared by more than 18% in morning trading on Friday after the home essentials company announced that it remained confident that it will complete the sale of its Hardware and Home Improvement business (HHI) to ASSA ABLOY.
In September last year, Spectrum Brands announced the sale of its HHI business to ASSA ABLOY for $4.3 billion in cash. However, earlier this year, the United States Department of Justice (DOJ) blocked the closing of the sale by filing a meritless lawsuit.
In another development, today, ASSA ABLOY announced that it intended to sell its Emtek and the Smart Residential Business in the U.S. and Canada to Fortune Brands.
Spectrum stated that it expects the sale of HHI and the divestiture of ASSA ABLOY’s Emtek business to close during the second quarter of next year after “the successful defense against the DOJ.”
SPB scores a Strong Buy consensus rating from Wall Street analysts with a unanimous three Buys.