ATLANTA–Spectrum Brands, parent of the Remington brand, has reached an agreement to acquire Russell Hobbs, parent of the small-appliance brands George Foreman, Black & Decker, Russell Hobbs, LitterMaid, Farberware, Juiceman, Breadman and Toastmaster brands.
Russell Hobbs was formerly known as Salton Inc., which was formed when Salton and Applica merged in 2007. Salton Inc. changed its name to Russell Hobbs in December 2009.
The purchase price was not disclosed, but a statement said Russell Hobbs, owned by Harbinger Capital Partners, is valued at $661 million net of debt. After the deal closes, which is expected to take place this summer, the combined company will operate under the Spectrum Brands name and will be managed by Spectrum’s current senior management team, led by Kent Hussey, Spectrum’s chief executive officer. Terry Polistina, CEO of Russell Hobbs, will join Spectrum to lead a reporting segment made up of the existing Russell Hobbs brand portfolio, the statement said.
Also as part of the transaction, Harbinger, which also holds about 40 percent of Spectrum’s shares, is expected to own about 63.7 percent of the newly combined company.
The statement said the combined entity should account for about $3 billion in annual revenues. HFN estimates that approximately $800 million is from small appliances.