Spectrum Brands Holdings acquires Tristar Products (home appliances and cookware business)
Snapshot
Spectrum Brands Holdings acquired Tristar Products (home appliances and cookware business) for $325.0 million total purchase price ($325 million cash at closing, plus up to $100 million cash in 2022 and $25 million cash or equity in 2023 if gross-profit targets are met; the $325.0M total includes $30.0 million acquisition-date fair value of contingent consideration) in February 2022. The transaction was structured as all cash (funded with cash on hand and a $500 million incremental term loan). Tristar Products (home appliances and cookware business) is a United States-based Home & Personal Care (HPC) business.
- Acquirer
- Spectrum Brands Holdings
- Target
- Tristar Products (home appliances and cookware business)
- Value
- $325.0 million total purchase price ($325 million cash at closing, plus up to $100 million cash in 2022 and $25 million cash or equity in 2023 if gross-profit targets are met; the $325.0M total includes $30.0 million acquisition-date fair value of contingent consideration)
- Date
- February 2022
- Type
- asset and equity purchase (business combination)
- Status
- ready
The deal at a glance
About this deal
Spectrum Brands Holdings acquired Tristar Products (home appliances and cookware business) for $325.0 million total purchase price ($325 million cash at closing, plus up to $100 million cash in 2022 and $25 million cash or equity in 2023 if gross-profit targets are met; the $325.0M total includes $30.0 million acquisition-date fair value of contingent consideration), a transaction completed in February 2022, structured as all cash (funded with cash on hand and a $500 million incremental term loan). The deal was a asset and equity purchase (business combination).
Tristar Products (home appliances and cookware business) operates in Home & Personal Care (HPC), is based in United States, had revenue of about $546 million net sales in the twelve months ended December 31, 2021 (combined appliances platform pro forma CY2021 net sales of $1.8 billion and adjusted EBITDA of $142 million). The home appliances and cookware categories of Tristar Products, Inc., acquired into a new entity HPC Brands, LLC. The business contributed the PowerXL, Emeril Lagasse and Copper Chef brands, well-established names in the fast-growing cooking-appliances category (air fryers, indoor grills, toaster ovens), with net sales totaling $546 million in the twelve months ended December 31, 2021 and sales growth over 85% in the prior three years.
Spectrum Brands combined the Tristar Business with its HPC segment to build a leading higher-margin, faster-growing global appliances platform, intending to separate the combined Home Appliances and Personal Care business into a standalone, pure-play global company.
Adds leading market-share positions in the fastest-growing cooking categories (air fryers, indoor grills, toaster ovens) and an innovative, proven brand-building platform that complements Spectrum's existing appliances and personal-care portfolio. Highly complementary and synergistic market positions; combined platform intended to be separated into a standalone, higher-margin, faster-growing global appliances company. HPC Brands, LLC, within the Home & Personal Care (HPC) segment
No advisory firms have been disclosed for this transaction.