MIDDLETON, Wis. — Spectrum Brands will purchase Armored AutoGroup Inc. from Avista Capital Partners for $1.4 billion, according to a press release.
Armored AutoGroup includes automotive aftermarket brands Armor All, STP and A/C PRO, noted the release. Armor All holds the No. 1 market share position in appearance products, while A/C PRO maintains the No. 1 U.S. position in the do-it-yourself air conditioner recharge category. Additionally, STP has the number three U.S. market share in performance chemicals.
For 2015 Armored AutoGroup is expected to generate net sales of more than $440 million, stated the release. About 80 percent of the company’s annual sales are generated in the U.S.
The acquisition should increase Spectrum Brands’ top-line growth and margins, reported the release. The deal will also positively affect the company’s cash flow.
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“This is a very exciting acquisition for Spectrum Brands that adds renowned brands with top market share positions in growing and highly profitable automotive aftermarket categories,” said Andreas Rouvé, CEO of Spectrum Brands Holdings, in the release.
“Armored AutoGroup sells into many of the same retail channels as our current businesses, increases our presence in home improvement centers, and gives us an additional platform for global growth using our broad international infrastructure,” added Rouvé in the release. “It provides consumers and retailers with best-in-class, do-it-yourself automotive solutions, and enjoys category leadership, high brand awareness and opportunities for additional operational efficiencies as a part of Spectrum Brands.”
Spectrum Brands and Armored AutoGroup’s boards of directors unanimously approved the transaction, shared the release. The acquisition is expected to close by June 30.
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