Rayovac Buys United Industries
Rayovac Corp. (Atlanta), a global consumer products company with a diverse portfolio, in January agreed to buy United Industries Corp. (St. Louis) for approximately $1.2 billion. The transaction includes the assumption of approximately $880 million of debt and a cash tax benefit of $140 million.

The acquisition extends Rayovac’s household products offerings beyond the battery and personal grooming categories into the growing lawn care and specialty pet supply categories, while leveraging the company’s operational expertise and existing relationships with global retailers.

United Industries’ pet division, which operates as United Pet Group, manufactures and markets premium pet supplies for dogs, cats, fish, birds and small animals. Its brand names include Marineland, Perfecto, Eight in One, Nature’s Miracle, Dingo, Lazy Pet, Aquarium Systems and Jungle Talk.

“Rayovac’s publicly stated goal has been to grow through acquisitions that diversify and increase our revenue base while leveraging our global merchandising and distribution capabilities,” said David A. Jones, chairman and chief executive officer of Rayovac. “United Industries is just such an acquisition. Upon closing, we will have a significant presence in several new consumer products markets—large growth categories where we can capitalize on our strengths with major retailers to leverage the full potential of the powerful combined enterprise.”

“We are extremely pleased to join a company that clearly believes in our brands, our markets and our merchandising strategy,” said Robert L. Caulk, United’s chief executive officer, who is expected to join Rayovac’s senior management team. “We share Rayovac’s belief that our products will flourish as part of a larger company with an integrated global manufacturing, distribution and information services platform, and a more significant relationship with our customers.” [March 2005 PET AGE]


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