Spectrum To Buy Tristar Products' Appliance, Cookware Arm For $325 Mln

(RTTNews) - Spectrum Brands Holdings, Inc. (SPB), a branded consumer products and home essentials provider, said Friday that it has signed a deal to acquire the home appliances and cookware business of Tristar Products, Inc., for $325 million in cash. The transaction is expected to close within the next three-month period.

Spectrum will pay a further up to $100 million in cash for the calendar year 2022, and another $25 million in cash or shares of the combined business for 2023, if certain total profit targets are met. The acquisition will be funded by a combination of cash on hand and a $500 million incremental loan incurred as a new tranche under the company's existing credit agreement.

David Maura, CEO of Spectrum Brands, commented: "The strategic combination of the Tristar Business with our HPC segment represents an exciting key milestone in our pursuit to create a leading higher-margin and faster-growing company in the global appliances market. The Tristar Business brings us a fantastic content creation studio, incredible DRTV capabilities, and adds a direct-to-consumer distribution business that we believe can meaningfully lift HPC's margins and growth rate."

With the move, the acquirer is building an appliances platform with combined net sales of $1.8 billion and adjusted EBITDA of $142 million, for the calendar year 2021. In addition, Spectrum expects to achieve $20 million to $30 million in synergies, once the business is completely integrated.