Spectrum Brands, Inc. agreed to sell $200 million of senior secured notes in early November, 2011. Spectrum Brands, Inc., is the parent company of United Pet Group and the parent of Spectrum Brands Holdings of Madison, Wisconsin. They planned to sell $150 million of notes but further increased the deal due to “strong demand in the marketplace,” said Dave Prichard, Spectrum’s vice president of investor relations and corporate communications.
The company seeks to grow its home and garden business via acquisitions, according to Prichard. It acquired Black Flag and TAT insecticide brands from The Homax Group, Inc. “The Black Flag and TAT brands will immediately strengthen our United Industries’ home and garden product portfolio and its share of the $2.5 billion U.S. consumer pest control market,” said Dave Lumley, CEO of Spectrum Brands Holdings and president of its home and garden division.
Prichard added that the primary impetus for more “tuck-in or bolt-on acquisitions,” such as pet supply businesses, would add the company the capital on hand as it continued active talks for multiple acquisitions opportunities. In terms of future deals, Prichard noted they would likely be with the cat and dog marketplace, including treats, healthcare, nutrition, pet training and containment, and possibly in the reptiles category.
Spectrum Brands is a global consumer products company and a supplier of products such as batters, shaving and grooming products, personal care products, insect repellants, and specialty pet supplies. Include in their portfolio are Black & Decker, Toastmaster, George Foreman, Nature’s Miracle, Cutter, and HotShot. The company’s brands are sold by the world’s top 25 retailers and available in a total of over a million stores located in 120 countries.
Further information about Spectrum Brands, Inc., may be found at www.spectrumbrands.com.