14527 Wed, 05/21/2008 - 12:24pm
ATLANTA–Spectrum Brands has agreed to sell its global pet-supplies unit to Salton and its wholly owned subsidiary, Applica Pet Products.
Under the terms of the agreement, Salton will pay Spectrum $692.5 million in cash, plus an aggregate principal amount of Spectrum’s subordinated debt securities equal to $222.5 million, less an amount equal to accrued and unpaid interest on these securities. When the deal closes, Salton, now 92 percent owned by Harbinger Capital Partners as the result of its merger with Applica earlier this year, will add pet products to its roster, which also includes kitchen products under the George Foreman, Black & Decker, Toastmaster and Farberware brands.
For Spectrum, which is the parent company of the Remington brand of shavers, the sale would mean some relief from a huge debt load. Kent Hussey, the company’s chief executive officer, said the deal would reduce its cash interest expense by $70 million on an annual basis.