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Spectrum Launches $500 Million Public Offering

SpectrumBrandslogoMIDDLETON, Wis.-Spectrum Brands has begun an underwritten public offering of $500 million in shares of its common stock, with part of the proceeds to be geared toward funding its acquisition of Armored AutoGroup.

The company announced its agreement to acquire the parent of the Armor All and STP brands of automotive aftermarket products in late April. The proceeds from this public offering will also be used to pay a portion of costs, fees and expenses related to the acquisition, including substantially all of Armored AutoGroup’s outstanding indebtedness, as of the closing of the acquisition. Currently, the deal is expected to close by the end of Spectrum’s second fiscal quarter on June 30.

If, for some reason, the acquisition is not completed, Spectrum said it would use the proceeds from the public offering for “general corporate purposes.” These may include working capital needs, the refinancing of existing debt, the expansion of the business and possible future acquisitions.