Spectrum Brand has lined up a $127 million investment from Oaktree Capital Management as it works to separate its home and personal care business from the rest of its operations.
The consumer goods company--whose brands range from Remington and George Foreman to Black Flag insecticides--on Monday said it signed a definitive agreement for a strategic investment by Oaktree in its home and personal care segment.
The injection consists of $67 million in the form of convertible preferred equity and $60 million in a lien term loan to Spectrum's business, and which is recourse only to the business.
When the transaction closes, Oaktree will own a roughly 27% equity stake in the home and personal care business, while the remainder will be held by a wholly-owned subsidiary of Spectrum.
Spectrum said the investment establishes a strategic partnership that is designed to support the long-term growth of the home and personal care business.
Spectrum Brands Holdings, Inc. is a diversified branded consumer products and home essentials company. Its segments include Global Pet Care (GPC), Home and Garden (H&G) and Home and Personal Care (HPC). The GPC segment consists of the Company’s global pet care business. The H&G segment consists of the Company’s home and garden, insect control and cleaning products business. The HPC segment consists of the Company’s global small kitchen and personal care appliances businesses. Its brands include Good’n’Fun, DreamBone, GOOD BOY, SmartBones, FURminator, Tetra, Marineland, Instant Ocean, and others. Its HPC products are small kitchen appliances including toaster ovens, coffee makers, blenders, and air fryers; personal care products such as hair dryers, flat irons and straighteners, and rotary and foil electric shavers, among others. It manufactures, markets and distributes its products globally in the North America, Europe, Middle East & Africa, Latin America and Asia-Pacific regions.
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