MIDDLETON, Wis., May 15, 2017 /PRNewswire/ -- Spectrum Brands
Holdings, Inc. (NYSE: SPB), a global consumer product company
offering an expanding portfolio of leading brands providing
superior value to consumers and customers every day, announced
today it has signed a definitive agreement to acquire privately
owned PetMatrix, LLC, a leading and rapidly growing manufacturer
and marketer of rawhide-free dog chews. PetMatrix is on pace to
achieve approximately $75 million in
sales in calendar year 2017. Financial terms of the accretive,
all-cash transaction were not disclosed.
"PetMatrix will immediately strengthen our pet care portfolio
with its well-established and growing brands catering to healthy
alternative pet trends," said Andreas Rouvé, Chief Executive
Officer of Spectrum Brands Holdings. "We expect it to further
solidify Spectrum Brands as a leader in the North American dog
chews category and to provide compelling white space revenue
opportunities in Europe,
Latin America and Asia."
Founded in 2008, PetMatrix provides a broad portfolio of
innovative, rawhide-free dog chews across its two flagship brands –
DreamBone® and SmartBones®. PetMatrix
products are sold to mass merchandisers, food and drug stores, and
pet specialty stores. The business benefits from a strong patent
portfolio and has a robust pipeline of new products expected to
drive future growth and product portfolio diversification
opportunities. PetMatrix is owned by Mark
Stern, an affiliate of Friend Skoler & Co., and members
of management.
"The PetMatrix team and I are excited to join Spectrum Brands,"
said Mark Stern, founder and CEO of
PetMatrix. "This partnership will bring additional resources to our
company and allow us to execute our plans for continued growth in
the coming years."
"Spectrum Brands has been very successful in finding highly
complementary companies like PetMatrix that provide excellent
top-line growth, a strong margin structure, low capital
requirements, high cash flow, and meaningful synergy
opportunities," said David Maura,
Executive Chairman of Spectrum Brands Holdings. "We look forward to
rapidly integrating and continuing to build on the excellence in
innovation and fast sales growth that the PetMatrix family has
built its legacy on."
The acquisition, which has been approved by Spectrum Brands'
Board of Directors, is expected to close by the end of May 2017 and is subject to customary closing
conditions.
RBC Capital Markets is serving as financial advisor and Paul,
Weiss, Rifkind, Wharton & Garrison LLP is serving as legal
advisor to Spectrum Brands. J.P. Morgan and Friend Skoler & Co.
are serving as financial advisors and Goodwin Procter LLP is
serving as legal advisor to PetMatrix.
About Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings, a member of the Russell 1000 Index, is a
global consumer products company offering an expanding portfolio of
leading brands providing superior value to consumers and customers
every day. The Company is a leading supplier of consumer batteries,
residential locksets, residential builders' hardware, plumbing,
shaving and grooming products, personal care products, small
household appliances, specialty pet supplies, lawn and garden and
home pest control products, personal insect repellents, and auto
care products. Helping to meet the needs of consumers worldwide,
our Company offers a broad portfolio of market-leading, well-known
and widely trusted brands including Rayovac®,
VARTA®, Kwikset®, Weiser®,
Baldwin®, National Hardware®,
Pfister®, Remington®, George Foreman®, Russell Hobbs®,
Black+Decker®, Tetra®,
Marineland®, Nature's Miracle®,
Dingo®, 8-in-1®, FURminator®,
IAMS® and Eukanuba® (Europe only), Digest-eeze™,
Healthy-Hide®, Littermaid®,
Spectracide®, Cutter®, Repel®, Hot
Shot®, Black Flag®, Liquid Fence®,
Armor All®, STP® and A/C PRO®.
Spectrum Brands' products are sold by the world's top 25 retailers
and are available in more than one million stores in approximately
160 countries. Based in Middleton,
Wisconsin, Spectrum Brands Holdings generated net sales of
approximately $5.04 billion in fiscal
2016. For more information, visit www.spectrumbrands.com.
Forward-Looking Statements
Certain matters discussed in this news release and oral and written
statements by representatives of the Company may be forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include statements
regarding the completion of the PetMatrix acquisition and the
expected benefits of the transaction and are identified by words
such as "future," "anticipate", "intend," "plan," "estimate,"
"believe," "expect," "project," "forecast," "could," "would,"
"should," "will," "may," and similar expressions of future intent
or the negative of such terms. These statements are subject to a
number of risks and uncertainties that could cause results to
differ materially from those anticipated as of the date of this
release. Actual results may differ materially as a result of (1)
the impact of our indebtedness on our business, financial condition
and results of operations; (2) the impact of restrictions in our
debt instruments on our ability to operate our business, finance
our capital needs or pursue or expand business strategies; (3) any
failure to comply with financial covenants and other provisions and
restrictions of our debt instruments; (4) the impact of actions
taken by significant stockholders; (5) the impact of expenses
resulting from the implementation of new business strategies,
divestitures or current and proposed restructuring activities; (6)
our ability to successfully integrate and operate new acquisitions
at the level of financial performance anticipated; (7) the
unanticipated loss of key members of senior management; (8) the
impact of fluctuations in commodity prices, costs or availability
of raw materials or terms and conditions available from suppliers,
including suppliers' willingness to advance credit; (9) interest
rate and exchange rate fluctuations; (10) our ability to utilize
our net operating loss carry-forwards to offset tax liabilities
from future taxable income; (11) the loss of, significant reduction
in, or dependence upon, sales to any significant retail
customer(s); (12) competitive promotional activity or spending by
competitors, or price reductions by competitors; (13) the
introduction of new product features or technological developments
by competitors and/or the development of new competitors or
competitive brands; (14) the effects of general economic
conditions, including inflation, recession or fears of a recession,
depression or fears of a depression, labor costs and stock market
volatility or changes in trade, monetary or fiscal policies in the
countries where we do business; (15) changes in consumer spending
preferences and demand for our products; (16) our ability to
develop and successfully introduce new products, protect our
intellectual property and avoid infringing the intellectual
property of third parties; (17) our ability to successfully
implement, achieve and sustain manufacturing and distribution cost
efficiencies and improvements, and fully realize anticipated cost
savings; (18) the cost and effect of unanticipated legal, tax or
regulatory proceedings or new laws or regulations (including
environmental, public health and consumer protection regulations);
(19) public perception regarding the safety of products that we
manufacture and sell, including the potential for environmental
liabilities, product liability claims, litigation and other claims
related to products manufactured by us and third parties; (20) the
impact of pending or threatened litigation; (21) the impact of
cybersecurity breaches or our actual or perceived failure to
protect company and personal data; (22) changes in accounting
policies applicable to our business; (23) government regulations;
(24) the seasonal nature of sales of certain of our products; (25)
the effects of climate change and unusual weather activity; and
(26) the effects of political or economic conditions, terrorist
attacks, acts of war or other unrest in international markets,
including those discussed herein and those set forth in the
combined securities filing of Spectrum Brands Holdings, Inc. and
SB/RH Holdings, LLC, including their most recently filed Annual
Report on Form 10-K or Quarterly Report on Form 10-Q.
Spectrum Brands Holdings also cautions the reader that its
estimates of trends, market share, retail consumption of its
products and reasons for changes in such consumption are based
solely on limited data available to Spectrum Brands Holdings and
management's reasonable assumptions about market conditions, and
consequently may be inaccurate, or may not reflect significant
segments of the retail market. Spectrum Brands Holdings also
cautions the reader that undue reliance should not be placed on any
forward-looking statements, which speak only as of the date of this
release. Spectrum Brands Holdings undertakes no duty or
responsibility to update any of these forward-looking statements to
reflect events or circumstances after the date of this report or to
reflect actual outcomes.
Spectrum Brands Holdings, Inc.
Investor/Media Contact:
Dave Prichard
608-278-6141
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SOURCE Spectrum Brands Holdings, Inc.