Spectrum Brands Inc., known better as the maker of Rayovac batteries and Remington shavers, will part with its global pet business for $692.5 million in cash, the company announced Wednesday.
The buyer, Miramar, Fla.-based Salton Inc., also will assume responsibility for the payments on $222.5 million of Spectrum's subordinated debt securities, less an amount equal to unpaid interest since the dates of the last interest payments.
A Salton news release said the company expects to finance the transaction with an equity investment provided by Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, L.P.
The two funds are the controlling stockholders of Salton, which trades in the pink sheets.
Sutherland acted as legal advisor to Spectrum Brands and Skadden, Arps, Slate, Meagher Flom LLP also provided certain legal advice to the company in connection with the transaction. Goldman, Sachs & Co. is acting as the Spectrum's financial advisor.
On the Salton side of the deal, Paul, Weiss, Rifkind, Wharton & Garrison LLP and SJ Berwin LLP are acting as legal advisors and Credit Suisse and Centerview Partners LLC are acting as financial advisors. Akin Gump Strauss Hauer & Feld LLP acted as legal advisor and Duff & Phelps acted as financial advisor to the Independent Committee of Salton's Board of Directors that negotiated the terms of the Harbinger Capital Partners equity investment.
The sale is expected to be completed by August 2008.