Spectrum Brands Holdings Inc., the consumer- products company backed by HRG Group Inc., has agreed to acquire Armor All for $1.4 billion including debt, in a bet the world’s drivers will spend more time polishing their cars.
Armored AutoGroup Parent Inc., a consumer-products company consisting primarily of Armor All and STP engine oil, is being sold by private-equity firm Avista Capital Partners, according to a statement Tuesday.
The purchase will be the largest purchase by Spectrum since a 2012 acquisition of Stanley Black & Decker Inc.’s home unit. Spectrum owns a broad range of consumer brands, from bug repellent to facial-grooming products. Spectrum has a market value of about $4.7 billion.
The Middleton, Wisconsin-based company intends to increase Armor All’s presence outside the U.S., which currently accounts for 80 percent of its sales, according to people familiar with the situation.
The deal will be funded the sale of $500 million of new shares, the statement shows. HRG, which owns about 59 percent of Spectrum, plans to subscribe to the share sale.
Avista Capital acquired Armor All from Clorox Co. for $780 million in 2010, data compiled by Bloomberg show.
Paul Weiss Rifkind Wharton & Garrison LLP advised Spectrum Brands on the deal.
--Additional reporting by Allison Collins