Spectrum Brands to acquire Tristar Products’ home appliances and cookware business
Spectrum Brands, an American branded consumer products and home essentials company, has agreed to acquire the home appliances and cookware business of Tristar Products in a deal worth up to $450 million.
The acquisition will be made by Spectrum Brands’ home and personal care (HPC) segment.
Spectrum Brands plans to combine Tristar Products’ home appliances and cookware business with its home and personal care segment. The combined businesses are planned to be separated by Spectrum Brands to create a new independent global company.
After the separation, the new Spectrum Brands company will be engaged in global pet care and home and garden businesses.
Through the acquisition, Spectrum Brands gains access to cooking appliances brands such as PowerXL, Copper Chef, and Emeril Lagasse, which posted net sales of $546 million in 2021.
Spectrum Brands to acquire Tristar Products’ home appliances and cookware business in a deal worth up to $450m. Photo courtesy of MrGajowy3 from Pixabay.
David Maura — Chairman and CEO of Spectrum Brands said: “The strategic combination of the Tristar Business with our HPC segment represents an exciting key milestone in our pursuit to create a leading higher-margin and faster-growing company in the global appliances market.
“The Tristar Business brings us a fantastic content creation studio, incredible DRTV capabilities and adds a direct-to-consumer distribution business that we believe can meaningfully lift HPC’s margins and growth rate. For some time, we have been seeking to successfully execute on an accretive transaction in this space and are pleased that this acquisition allows us to create a global appliances leadership platform.”
As per the terms, Tristar Products will be paid $325 million in cash at the time of closing of the deal, up to $100 million subject to meeting some gross profit targets in 2022, and an additional $25 million if certain other gross profit targets are met in 2023.
Keith Mirchandani — Founder and CEO of Tristar Products said: “I am thrilled to have the Tristar Business join a global organization like Spectrum Brands, which can provide the reach and resources for this business to drive significantly higher levels of growth.
“I have no doubt that this deal will provide a successful future for the combined business’ stakeholders, including all of its employees and consumers. This partnership also allows the Tristar Business to continue to deliver the most innovative, value-added and recognizable products.
“I am a big believer in the future prospects of this business under Spectrum Brands’ ownership and I am excited to have the deal structured to allow me to participate in the future financial performance of the business.”
The deal is expected to close within 90 days.