By Kuldip K. Ambastha
On Thursday, September 15, 2022, the stock of Spectrum Brands Holdings, Inc. (SPB), a branded consumer products company, fell in price by -16.2% per share. Within Spectrum Brands Holdings, there is a residential door hardware division offering the Baldwin and Kwikset brands. A rival company had expressed interest in acquiring this division, but the U.S. Department of Justice (DOJ) has initiated a lawsuit to block an acquisition. The DOJ maintains that a completed acquisition would lead to higher prices for customers along with reduced innovation for homeowners looking into smart lock or premium mechanical door hardware. Further legal activity is likely to occur since Spectrum Brands Holdings and the acquiring company both oppose the DOJ’s lawsuit.
Keywords – Spectrum Brands Holdings, Inc., Spectrum Brands Holdings, Spectrum Brands, Spectrum, SPB, Department of Justice, DOJ, branded consumer products, price, innovation, residential door hardware, smart lock, Baldwin, Kwikset, litigation, lawsuit.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in SPB.
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