On Tuesday, Spectrum Brands Holdings Inc has announced to acquire Armored AutoGroup Parent Inc, the manufacturer of Armor All and STP car care products, for a lump sum of $1.4 billion.
Spectrum Brands Holdings is a diversified and global consumer products company with the leading market brands. The company owns Kwikset locks, George Forman grills, Black & Decker power tools and home improved products, Rayovac batteries and Farberware cookware. In the last fiscal year, it reported the sales of $4.43 billion. The company also recently acquired European operations of the Iams, Eukanuba pet care brands and Salix Animal Health, which makes dog treats, in separate deals.
The recently acquired company Armored AutoGroup’s products consists of Armor All’s protectants, tire and wheel care products and air fresheners, STP’s fuel addictives and A/C Pro air conditioner recharge products which will now belong to Spectrum Brands. Adding to it, Armored company makes around $440 million annually, through the private equity firm Avista Capital Partners. 80% of its revenue was generated in the USA.
The Wisconsin-based company has said the deal includes the taking over of Armored’s debt and it will pay for it with a combination of new debt and $500 million of its stock, including equity that will be purchased by various holding company HRG Group Inc. Major stakes of Spectrum Brands is held by HRG which was previously called Harbinger Group Inc. The deal is expected to be completed by June 30th.
Share values of the Spectrum Brands Holdings increased 49 cents to $88.08 on Tuesday after the announcement, but the share values are down almost 8% in this year when compared to the previous year. In aftermarket trading, the share values fell 71 cents to $87.37. This acquisition is expected to help the company regain its old market position.