Spectrum Brands Holdings Inc (SPB)

[Enterprising Investor]

Spectrum Brands Holdings Acquires Salix Animal Health, World’s Largest Vertically Integrated Rawhide Dog Treat Company (1/20/15)

MIDDLETON, Wis.--(BUSINESS WIRE)--Spectrum Brands Holdings, Inc. (NYSE: SPB), a global and diversified consumer products company with market-leading brands, announced today it has acquired privately owned Salix Animal Health, LLC, the world’s leading and largest vertically integrated producer and distributor of premium, natural rawhide dog chews, treats and snacks with annual revenues of approximately $100 million. Financial terms of the accretive, all-cash transaction were not disclosed.

“Salix will further strengthen, expand and diversify our Pet segment’s position in rawhide dog treats, which is a fast-growing pet sub-category with estimated annual global retail sales of $2 billion,” said Dave Lumley, Chief Executive Officer of Spectrum Brands Holdings. “It will provide important channel and brand differentiation for Pet’s North American Dingo® business, along with immediate revenue opportunities in Europe and Latin America.”

Founded in 1988, Salix offers a comprehensive line of chews made from beef hides, pork, chicken, beef and other various proteins. Salix branded and private label products are sold to mass merchandisers, grocery stores, pet specialty stores and warehouse clubs. Its two flagship brands are Healthy-Hide® – which is marketed across the Good ‘n’ Fun, Good ‘n’ Fit, and Good ‘n’ Tasty family of brands – and Digest-eeze™. The business has strong patents around flavors and digestibility.

Salix has a flexible supply chain, including multiple manufacturing plants in Brazil, Ecuador, Mexico and two in Colombia, which will give Spectrum Brands’ Pet business increased optionality for a low-cost global rawhide production and supply network.

“Salix is an excellent opportunity for us in a number of ways, including the ability to expand our strong Dingo® dog treats business with complementary product offerings, enhance our intellectual property and innovation with the Digest-eeze™ enzyme technology, and provide an improved vertically integrated sourcing model in the Americas,” said David Maura, Chairman of the Board of Spectrum Brands Holdings. “This deal is a classic ‘plug and play’ acquisition for us, with immediate synergies on the cost side and very attractive top-line growth opportunities globally. I welcome Salix to the Spectrum Brands family of businesses, and I am personally excited about our future together as we take this business to new heights.”

About Spectrum Brands’ Global Pet Supplies Business

With fiscal 2014 net sales of $600 million, Spectrum Brands’ Global Pet Supplies business is the leading manufacturer of consumer products for pet supply markets globally. It provides innovative and well recognized products of outstanding quality for pet owners, including dogs, cat, birds, small animals, fish and reptiles. In aquatics, Tetra® is the premium brand name with products including fish food and water treatments, aquariums, filters, heaters, pumps and other supplies. Companion pet products include treats, clean-up and training aid products, health and grooming aids, and bedding marketed under brands such as 8-in-1®, Dingo®, FURminator®, Nature’s Miracle®, IAMS® and Eukanuba®. For more information, visit www.unitedpetgroup.com.

About Spectrum Brands Holdings, Inc.

Spectrum Brands Holdings, a member of the Russell 2000 Index, is a global and diversified consumer products company and a leading 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. Helping to meet the needs of consumers worldwide, our Company offers a broad portfolio of market-leading, well-known and widely trusted brands including Rayovac®, VARTA®, Kwikset®, Weiser®, Baldwin®, National Hardware®, Pfister™, Remington®, George Foreman®, Black & Decker®, Farberware®, Tetra®, Marineland®, Nature’s Miracle®, Dingo®, 8-in-1®, FURminator®, IAMS®, Eukanuba®, Littermaid®, Spectracide®, Cutter®, Repel®, Hot Shot®, Black Flag® and Liquid Fence®. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in approximately 160 countries. Based in Middleton, Wisconsin, Spectrum Brands Holdings generated net sales of approximately $4.43 billion in fiscal 2014. For more information, visit www.spectrumbrands.com.

http://www.businesswire.com/news/home/20150120005209/en/Spectrum-Brands-Holdings-Acquires-Salix-Animal-Health#.VL6wsYktGUk