Armored AutoGroup is a consumer products company consisting primarily of the Armor All and STP brands – two of the most recognizable brands in the automotive aftermarket – and the A/C PRO brand in the do-it-yourself automotive air conditioner recharge category. Avista acquired Armor All and STP in September 2010 from Clorox. In March 2014, Avista completed the add-on acquisition of the A/C PRO brand from Kinderhook Industries.
Armor All has the top US market share in the appearance products category with its line of protectants, wipes, tire and wheel care products, glass cleaners, leather care products, air fresheners and washes. STP has the third highest US market share in the performance chemicals category and offers a line of oil and fuel additives, functional fluids and automotive appearance products. A/C PRO holds the top US position in the do-it-yourself air conditioner recharge category.
Nearly 80 percent of Armored AutoGroup’s annual revenues are generated in the US, primarily through auto retailers, mass merchandisers, home improvement centers and dollar stores. Armored AutoGroup is expected to generate net sales of more than $440 million and adjusted EBITDA of $140 million for the calendar year ending December 31, 2015.
Spectrum Brands (NYSE: SPB) is a diversified consumer products company and a 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. Spectrum Brands had net sales of approximately $4.4 billion in fiscal 2014. The company is headquartered near Madison in Middleton, WI (www.spectrumbrands.com).
Avista Capital Partners, with over $6 billion of capital under management, makes control or influential minority investments in growth-oriented energy, healthcare, communications & media, industrials, and consumer businesses. The firm was founded in 2005 and is based in New York with offices in Houston and London (www.avistacap.com).
The $1.4 billion cash purchase price will be funded through a combination of new debt and $500 million of common stock. Spectrum Brands has received debt financing commitments from Credit Suisse, Deutsche Bank and Jefferies.
Credit Suisse Securities and Deutsche Bank acted as financial advisors to Spectrum Brands and JPMorgan Securities served as lead financial advisor to Armored AutoGroup.
This transaction is expected to close before the end of June 2015.
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-29-15