ATLANTA–Spectrum Brands and Salton have mutually terminated the sale of Spectrum’s global pet-products business to Salton’s subsidiary, Applica Pet Products.
In a Spectrum statement, Kent Hussey, chief executive officer, said Spectrum was unable to receive the consent of its senior lenders that the company needed to close the deal “on a basis that would be in the best interests of our shareholders and the company.” The deal called for Spectrum to sell the pet-supply business to Salton for $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. Originally announced in May, the deal was put on hold in late June due to the inability to get the senior lenders to agree to it.
Hussey said Spectrum would now hold onto the global pet-supplies business “and work to capture the strong market potential we see there.” He also said the company would look for alternatives to reduce its indebtedness.
As of this morning, Salton had not issued a statement on the termination of the deal.