Rayovac Corp. and Remington Products Company, LLC (Bridgeport, CT, U.S.) announced that Rayovac Corp. has entered into an agreement to purchase Remington Products Company, a maker of personal care products, for approximately U.S. $322 million, including the assumption of debt. The all-cash transaction is expected to close within the next 60 days.
Remington, owned by the Kiam family and Vestar Capital Partners since 1996, designs and distributes battery-powered electric shavers and accessories, grooming products, hair care appliances, and other small electrical consumer appliances. For the last 12 months ending June 30, 2003, the company reported sales of $360.3 million, net income of $20.2 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $47.0 million.
"Remington is a well-known and respected brand with a sound reputation for quality and performance," said David Jones, Rayovac chairman and CEO. "Remington brings to Rayovac a strong record of solid growth and a line of shaving, grooming and personal care products that will provide exciting diversification to our current product offerings.
"Rayovac and Remington share a similar customer base, our products are sold through many of the same distribution channels and we're both firmly committed to technology and product innovation," Mr. Jones added.
Rayovac estimates the acquisition will be accretive in fiscal 2004. The transaction is subject to regulatory approval. Rayovac anticipates financing a substantial portion of the transaction with subordinated debt, and the company has secured bridge financing in the event it is necessary.
The former Remington CEO and pitchman's son, Tory Kiam, explained that his family had a rewarding 24-year association with the company and is pleased with the decision to transfer ownership to Rayovac. "Remington's management team, board, and Vestar displayed tremendous professionalism and leadership over the past seven years," Mr. Kiam said. "My father would have been very proud of the successes this company has achieved and the bright future it has secured with today's announcement."
Citigroup Global Markets Inc., acted as advisor to Rayovac on the Remington transaction. Bear, Stearns & Co. Inc. was the financial advisor to Remington.
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