Spectrum Brands Holdings Inc has closed its previously announced buy of consumer products company Armored AutoGroup for $1.4 billion. The seller was Avista Capital Partners.
MIDDLETON, Wis., May 21, 2015 (BUSINESS WIRE) — Spectrum Brands Holdings, Inc., a global and diversified consumer products company with market-leading brands, announced today it has completed the acquisition of Armored AutoGroup Parent Inc. (Armored AutoGroup) from Avista Capital Partners for $1.4 billion in cash and assumed debt. A definitive merger agreement was announced on April 28.
Armored AutoGroup is a consumer products company consisting primarily of the world-renowned Armor All® and STP® brands, two of the most recognizable brands in the automotive aftermarket appearance products and performance chemicals/additives categories, and the market-leading A/C PRO® brand in the do-it-yourself automotive air conditioner recharge category.
“We are pleased to complete this exciting and accretive acquisition which adds market-leading, iconic brands in attractive auto care retail categories to Spectrum Brands’ diverse portfolio of strong consumer brands,” said Andreas Rouvé, Chief Executive Officer of Spectrum Brands Holdings. “This highly profitable business is expected to enhance our margins and free cash flow profile, further improve our customer mix and shelf space in complementary channels, offer substantial international growth potential by leveraging our existing global infrastructure, and enhance our overall scale and product diversification with a new, large and growing do-it-yourself auto care aftermarket category.
“We look forward to working with the employees of Armored AutoGroup to achieve a smooth integration and accelerate the growth of the Armor All®, STP® and A/C PRO® brands here and abroad,” Mr. Rouvé said.
David Maura, Chairman of the Board of Spectrum Brands, said, “Our acquisition of Armored AutoGroup is a perfect fit with our strategy to buy and build high brand equity businesses, with strong margin structures, low capital spending requirements, and significant free cash flow generation. We welcome the Armored AutoGroup employees to the Spectrum Brands family and look forward to driving this outstanding business to even greater levels of performance and delivering outstanding quality, innovation and service to our customers. We also remain committed to maintaining a strong balance sheet and fully intend to deploy our growing free cash flow stream to rapidly delever our balance sheet as we have in the past.”
Armored AutoGroup will be a separate reporting segment within Spectrum Brands, known as Global Auto Care (GAC), reporting to Chief Executive Officer Andreas Rouvé.
About Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings, a member of the Russell 2000 Index, is a global and diversified consumer products company and a leading supplier of consumer batteries, residential locksets, residential builders’ hardware, plumbing and accessories, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn and garden and home pest control products, personal insect repellents, and auto care products. Helping to meet the needs of consumers worldwide, our Company offers a broad portfolio of market-leading, well-known and widely trusted brands including Rayovac®, VARTA®, Kwikset®, Weiser®, Baldwin®, National Hardware®, Pfister™, Remington®, George Foreman®, Black + Decker®, Farberware®, Tetra®, Marineland®, Nature’s Miracle®, Dingo®, 8-in-1®, FURminator®, IAMS®, Eukanuba®, Digest-eeze™, Healthy-Hide®, Littermaid®, Spectracide®, Cutter®, Repel®, Hot Shot®, Black Flag®, Liquid Fence®, Armor All®, STP® and A/C PRO®. Spectrum Brands’ products are sold by the world’s top 25 retailers and are available in more than one million stores in approximately 160 countries. Based in Middleton, Wisconsin, Spectrum Brands Holdings generated net sales of approximately $4.43 billion in fiscal 2014. For more information, visit www.spectrumbrands.com .
About Avista Capital Partners
Avista Capital Partners is a leading private equity firm with approximately $6 billion under management and offices in New York, Houston and London. Founded in 2005, Avista makes controlling or influential minority investments in growth-oriented energy, healthcare and communications & media businesses. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses.