Spectrum Brands Holdings, Inc. (NYSE: SPB), a global and diversified
consumer products company with market-leading brands, announced today it
has acquired privately owned Salix Animal Health, LLC, the world’s
leading and largest vertically integrated producer and distributor of
premium, natural rawhide dog chews, treats and snacks with annual
revenues of approximately $100 million. Financial terms of the
accretive, all-cash transaction were not disclosed.
“Salix will further strengthen, expand and diversify our Pet segment’s
position in rawhide dog treats, which is a fast-growing pet sub-category
with estimated annual global retail sales of $2 billion,” said Dave
Lumley, Chief Executive Officer of Spectrum Brands Holdings. “It will
provide important channel and brand differentiation for Pet’s North
American Dingo® business, along with immediate revenue opportunities in
Europe and Latin America.”
Founded in 1988, Salix offers a comprehensive line of chews made from
beef hides, pork, chicken, beef and other various proteins. Salix
branded and private label products are sold to mass merchandisers,
grocery stores, pet specialty stores and warehouse clubs. Its two
flagship brands are Healthy-Hide® – which is marketed across the Good
‘n’ Fun, Good ‘n’ Fit, and Good ‘n’ Tasty family of brands – and
Digest-eeze™. The business has strong patents around flavors and
digestibility.
Salix has a flexible supply chain, including multiple manufacturing
plants in Brazil, Ecuador, Mexico and two in Colombia, which will give
Spectrum Brands’ Pet business increased optionality for a low-cost
global rawhide production and supply network.
“Salix is an excellent opportunity for us in a number of ways, including
the ability to expand our strong Dingo® dog treats business with
complementary product offerings, enhance our intellectual property and
innovation with the Digest-eeze™ enzyme technology, and provide an
improved vertically integrated sourcing model in the Americas,” said
David Maura, Chairman of the Board of Spectrum Brands Holdings. “This
deal is a classic ‘plug and play’ acquisition for us, with immediate
synergies on the cost side and very attractive top-line growth
opportunities globally. I welcome Salix to the Spectrum Brands family of
businesses, and I am personally excited about our future together as we
take this business to new heights.”
About Spectrum Brands’ Global Pet Supplies Business
With fiscal 2014 net sales of $600 million, Spectrum Brands’ Global
Pet Supplies business is the leading manufacturer of consumer products
for pet supply markets globally. It provides innovative and well
recognized products of outstanding quality for pet owners, including
dogs, cat, birds, small animals, fish and reptiles. In aquatics, Tetra®
is the premium brand name with products including fish food and water
treatments, aquariums, filters, heaters, pumps and other supplies.
Companion pet products include treats, clean-up and training aid
products, health and grooming aids, and bedding marketed under brands
such as 8-in-1®, Dingo®, FURminator®, Nature’s Miracle®, IAMS® and
Eukanuba®. For more information, visit www.unitedpetgroup.com.
About Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings, a member of the Russell 2000 Index, is a
global and diversified consumer products company and a leading supplier
of consumer batteries, residential locksets, residential builders’
hardware, faucets, shaving and grooming products, personal care
products, small household appliances, specialty pet supplies, lawn and
garden and home pest control products, and personal insect repellents.
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®, Black & Decker®,
Farberware®, Tetra®, Marineland®, Nature’s Miracle®, Dingo®, 8-in-1®,
FURminator®, IAMS®, Eukanuba®, Littermaid®, Spectracide®, Cutter®,
Repel®, Hot Shot®, Black Flag® and Liquid Fence®. 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 $4.43 billion in fiscal 2014. For more information,
visit www.spectrumbrands.com.
Forward-Looking Statements
Certain matters discussed in this news release and other oral and
written statements by representatives of the Company regarding matters
such as expected sales, adjusted EBITDA, debt reduction and leverage,
and other measures of financial performance, may be forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. We have tried, whenever possible, to identify these
statements by using words like “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) Spectrum Brands
Holdings’ ability to manage and otherwise comply with its covenants with
respect to its significant outstanding indebtedness, (2) our ability to
integrate, and to realize synergies from, the combined businesses of
Spectrum Brands and the Hardware & Home Improvement Group of Stanley
Black & Decker, and from our purchase of 56 percent of the equity of
Shaser, Inc., and from other bolt-on acquisitions, (3) risks related to
changes and developments in external competitive market factors, such as
introduction of new product features or technological developments,
development of new competitors or competitive brands or competitive
promotional activity or spending, (4) changes in consumer demand for the
various types of products Spectrum Brands Holdings offers, (5)
unfavorable developments in the global credit markets, (6) the impact of
overall economic conditions on consumer spending, (7) fluctuations in
commodities prices, the costs or availability of raw materials or terms
and conditions available from suppliers, (8) changes in the general
economic conditions in countries and regions where Spectrum Brands
Holdings does business, such as stock market prices, interest rates,
currency exchange rates, inflation and consumer spending, (9) Spectrum
Brands Holdings’ ability to successfully implement manufacturing,
distribution and other cost efficiencies and to continue to benefit from
its cost-cutting initiatives, (10) Spectrum Brands Holdings’ ability to
identify, develop and retain key employees, (11) unfavorable weather
conditions and various other risks and uncertainties, including those
discussed herein and those set forth in the securities filings of each
of Spectrum Brands Holdings, Inc. and Spectrum Brands, Inc., including
each of their most recently filed Annual Reports on Form 10-K or
Quarterly Reports 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.
Copyright Business Wire 2015