Daily News: May 1, 2017

Deutsche Agents Spectrum Brands Facility Before PetMatrix Buy

Spectrum Brands Holdings signed an agreement to acquire privately owned PetMatrix, a manufacturer and marketer of rawhide-free dog chews. PetMatrix is on pace to achieve approximately $75 million in sales in the calendar year 2017. Financial terms of the accretive, all-cash transaction were not disclosed

According to a related 8-K filing, on April 7, Spectrum Brands closed a credit facility with Deutsch Bank, New York Branch as administrative agent, consisting of a $1 billion term loan, a C$73.9 million ($54 million) term loan, a €54.7 million ($59.6 million) term loan and a $700 million revolver. The revolver includes a U.S. dollar tranche and a multicurrency tranche.

“PetMatrix will immediately strengthen our pet care portfolio with its well-established and growing brands catering to healthy alternative pet trends,” said Andreas Rouvé, CEO of Spectrum Brands Holdings. “We expect it to further solidify Spectrum Brands as a leader in the North American dog chews category and to provide compelling white space revenue opportunities in Europe, Latin America and Asia.”

Founded in 2008, PetMatrix provides a broad portfolio of rawhide-free dog chews across its two flagship brands – DreamBone and SmartBones. PetMatrix products are sold to mass merchandisers, food and drug stores and pet specialty stores.

RBC Capital Markets is serving as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison is serving as legal advisor to Spectrum Brands. J.P. Morgan and Friend Skoler & Co. are serving as financial advisors. and Goodwin Procter is serving as legal advisor to PetMatrix.

Spectrum Brands Holdings, a member of the Russell 1000 Index, is a global consumer products company offering an expanding portfolio of brands including Rayovac, VARTA, Kwikset, Weiser, Baldwin, National Hardware, Pfister and George Foreman.