Spectrum Completes Merger with Russell Hobbs

Spectrum Brands Inc. of Madison, Wis., reported on June 16 that it has completed its planned merger with Russell Hobbs Inc. of Miramar, Fla.

CEO Dave Lumley said the new consumer goods company, operating under the name Spectrum Brands Holdings Inc., will have annual revenue of more than $3 billion. As part of the deal, Russell Hobbs' LitterMaid brand has joined Spectrum's United Pet Group business unit, which includes such brands as Tetra, 8 in 1 and Dingo.

The combined companies plan to refinance a portion of Spectrum's existing senior debt and a portion of Russell Hobbs' existing senior debt through a combination of a $1 billion new term loan due 2017, $500 million in new notes due 2018 and a new $300 million asset-based lending (ABL) revolving credit facility due 2014.

In addition to serving to refinance existing debt, the expected net proceeds from the offering of the notes—together with the borrowing under Spectrum's new term loan and ABL revolving facility—will pay the fees and expenses incurred in connection with the Russell Hobbs merger.