Spectrum Brands Holdings Inc. agreed to acquire Armored
AutoGroup Parent Inc. from private-equity firm Avista Capital
Partners in a $1.4 billion deal that includes assumed debt.
Armored AutoGroup's products include the Armor All and STP
brands. The Danbury, Conn., company emerged with a new name after
Avista acquired Clorox Co.'s global auto-care business in late
2010.
The $1.4 billion deal and related expenses are expected to be
funded with new debt and roughly $500 million of Spectrum Brands
stock, including equity that will be purchased by diversified
holding company HRG Group Inc., Spectrum Brands' majority
stockholder. HRG was formerly called Harbinger Group Inc.
Armored AutoGroup is expected to generate net sales of more than
$440 million this year. Nearly 80% of the company's revenue is
generated in the U.S.
The deal is expected to close by June 30 and to add to Spectrum
Brands' sales and per-share earnings in the first 12 months after
the deal is completed.
Write to Tess Stynes at tess.stynes@wsj.com
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