Spectrum Brands to buy car care products maker Armored AutoGroup for $1.4 bn

29 Apr 2015


US consumer products company Spectrum Brands Holdings Inc yesterday struck a deal to buy car care products maker Armored AutoGroup Parent Inc from private equity firm Avista Capital Partners for $1.4 billion.

Spectrum expects to fund the acquisition with $900 million of debt and about $500 million of its common stock, which includes equity to be purchased by parent Harbinger Group Inc.

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

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

Armored AutoGroup is a consumer products company consisting primarily of Armor All and STP brands, two of the most recognisable 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.

Nearly 80 per cent of Armored AutoGroup's annual revenues are generated in the US, through auto retailers, mass merchandisers, home improvement centres and dollar stores.

The acquisition is expected to increase Spectrum Brands' top-line growth and margins and add over $60 million of free cash flow in the first full fiscal year after closing.

''This is a very exciting acquisition for Spectrum Brands that adds renowned brands with top market share positions in growing and highly profitable automotive aftermarket categories,'' said Andreas Rouvé, CEO of Spectrum Brands Holdings.

David Maura, chairman of Spectrum Brands, said, ''Armored AutoGroup's brands are virtually synonymous with auto appearance, detailing and maintenance, both here and around the world. The addition of Armored AutoGroup is fully consistent with our acquisition strategy of buying and building high brand equity businesses, with strong margin structures, and significant free cash flow generation with the opportunity to reinvest in and grow the business both here in the US and around the globe.''

Madison, Wisconsin-based Spectrum is a global and diversified consumer products company and a leading supplier of batteries, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn & garden and home pest control products, personal insect repellents and portable lighting.

Its portfolio of brands include Rayovac, VARTA, Kwikset, Weiser, Baldwin, National Hardware, Pfister, Remington, George Foreman, Black + Decker, Farberware, Tetra, Marineland, Nature's Miracle, Dingo, 8-in-1, and others.

Its products are sold by the world's top 25 retailers and are available in more than one million stores in more than 160 countries.

Spectrum, 57-per cent owned by Harbinger Group, generated sales of around $4.4 billion in fiscal 2014.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more