Spectrum Brand Holdings to acquire Armored AutoGroup Parent for $1.4 billion

Freeman Staff

April 28, 2015

MIDDLETON — Spectrum Brand Holdings, Inc. announced Tuesday that it has signed an agreement to acquire Armored AutoGroup Parent Inc., makers of Armor All and STP brands, for $1.4 billion in cash and assumed debt.

Armored AutoGroup is a consumer products company currently owned by Avista Capital Partners.

According to the announcement, Armored AutoGroup is expected to generate net sales of more than $440 million and adjusted EBITDA in excess of $140 million for the calendar year ending Dec. 31, 2015. Nearly 80 percent of Armored AutoGroup’s annual revenues are generated in the U.S., primarily through auto retailers, mass merchandisers, home improvement centers and dollar stores.

“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 Rouve, chief executive officer of Spectrum Brands Holdings, in a statement. “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. 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.”

Following the closing of the transaction, Armored AutoGroup is expected to operate as a separate division within Spectrum Brands, reporting to Rouve, according to the announcement. The acquisition is expected to close before the end of Spectrum Brands’ fiscal third quarter on June 30.