Spectrum Brands To Buy Armored AutoGroup For $1.4 Bln In Cash And Assumed Debt

(RTTNews) - Consumer products company Spectrum Brands Holdings Inc (SPB) on Tuesday said it has agreed to buy Armored AutoGroup Parent Inc for $1.4 billion in cash and assumed debt from Avista Capital Partners.

Spectrum said the deal adds market-leading consumer product brands in attractive auto care retail categories. Spectrum expects the deal to increase its top-line growth and margins and be accretive to adjusted EPS in the first full fiscal year after closing.

Spectrum said the deal has been unanimously approved by both companies' boards and is expected to close before the end of its fiscal third quarter on June 30.

Armored AutoGroup is expected to generate sales of more than $440 million for the calendar year ending December 2015. Nearly 80 percent of its sales are generated in the U.S., mainly through auto retailers, mass merchandisers, home improvement centers and dollar stores.

Armored AutoGroup consists primarily of the Armor All and STP brands, two key brands in the automotive aftermarket appearance products and performance chemicals/additives categories, and the A/C PRO brand in the do-it-yourself automotive air conditioner recharge category.

Spectrum said the $1.4 billion cash purchase price and associated transaction fees and expenses are expected to be funded through a combination of new debt and about $500 million of Spectrum Brands common stock, including equity to be purchased by HRG Group Inc.

As part of the deal, Spectrum Brands has received debt financing commitments from Credit Suisse, Deutsche Bank and Jefferies.

Upon closing, Armored AutoGroup is expected to operate as a separate division within Spectrum Brands.

Credit Suisse Securities (USA) LLC and Deutsche Bank AG acted as financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Spectrum Brands.