Spectrum Brands said late Tuesday that the agreement has been approved by the boards of both companies, and the transaction is expected to close before the end of Spectrum’s fiscal third quarter on June 30, pending regulatory approvals and customary closing conditions.
Armored AutoGroup includes the Armor All and STP auto care brands, as well as the A/C PRO brand in the do-it-yourself automotive air conditioner recharge category. Spectrum Brands said Armored AutoGroup is expected to generate net sales of more than $440 million for the calendar year ending on Dec. 31.
Almost 80% of Armored AutoGroup’s annual sales are generated in the United States, mainly via auto retailers, mass merchants, home improvement centers and dollar stores, Spectrum Brands reported.
“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,” stated Andreas Rouvé, chief executive officer of Spectrum Brands Holdings. “Armored AutoGroup sells into many of the same retail channels as our current businesses, increases our presence in home improvement centers and gives us an additional platform for global growth using our broad international infrastructure. It provides consumers and retailers with best-in-class, do-it-yourself automotive solutions and enjoys category leadership, high brand awareness and opportunities for additional operational efficiencies as a part of Spectrum Brands.
Plans call for Armored AutoGroup to operate as a separate division within Spectrum Brands, reporting to Rouvé.
“This is a terrific business that we believe will be highly and immediately accretive to our company right out of the box,” commented David Maura, chairman of Spectrum Brands. “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 U.S. and around the globe. ”
Spectrum Brands’ products span such categories as consumer batteries, residential locksets, residential builders’ hardware, faucets, shaving and grooming products, personal care products, small appliances, pet care, lawn and garden, home pest control and insect repellents. Its 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, FURminator, IAMS, Eukanuba, Digest-eeze, Healthy-Hide, Littermaid, Spectracide, Cutter, Repel, Hot Shot, Black Flag and Liquid Fence.