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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