Shares of Spectrum Brands Holdings Inc. SPB, +19.55% soared 20.8% toward a three-year high in midday trading Wednesday, after the branded consumer brands company announced an agreement to sell its hardware and home improvement (HHI) business for $4.3 billion in cash to Sweden-based ASSA ABLOY. Spectrum Brands said it expects receive net proceeds of $3.5 billion from the deal, which it plans to use to repay debt. Spectrum said the deal will “simplify” the company around three business units, consisting of Global Pet Care, Home & Garden and Home and Personal Care. “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 Global Pet Care and Home & Garden, while continuing to look for strategic and organic ways to enhance the value of Home and Personal Care,” said Chief Executive David Maura. Spectrum’s stock, which was on track for the highest close since April 2018, has gained 8.2% over the past three months, while the S&P 500 SPX, -0.27% has tacked on 6.7%.
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