Spectrum Brands (brands including Tetra) has completed the sale, already announced, of its hardware and DIY store division to Assa Abloy in a cash transaction worth 4.3 bn dollars subject to customary purchase price adjustments. The Assa Abloy Group is a Swedish corporate group operating worldwide, which produces and markets closure systems, electromechanical products, security doors and fittings.
David Maura, CEO of Spectrum Brands, said that completion of the deal would lead to substantial liquidity and would strengthen the financial position, “offering us a solid financial basis for achieving our goals both strategically and operationally in this increasingly uncertain and difficult economic landscape”.
After the deduction of taxes and charges and the usual price adjustments, the company expects net proceeds of around 3.6 bn dollars from the sale. The debt burden is to be reduced by 1.6 bn dollars. Spectrum Brands will continue to pursue its strategic aim of becoming a faster-growing, higher-margin global company for pet products plus home and garden. To this end it will separate off the home and body care business from the other divisions in the medium term.
