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Spectrum Brands Adds Russell Hobbs to Create Global Consumer Products Company
On Wednesday June 16, Spectrum Brands, Inc. and Paul, Weiss client Russell Hobbs, Inc. announced the completion of a transaction which brings Russell Hobbs' network of well-respected family of small appliance brands into Spectrum's portfolio to form a new global consumer products company with an estimated $3 billion in annual revenues, a strong balance sheet, and a diverse portfolio of market-leading brands. The combination creates a new home appliance business unit featuring a variety of well-known consumer brands, including George Foreman, Russell Hobbs, Black & Decker, Toastmaster and LitterMaid.
Investment funds managed by Harbinger Capital Partners were the sole shareholders of Russell Hobbs, Inc. and owned approximately 40 percent of the outstanding equity of Spectrum Brands. As a result of the transaction, the Harbinger funds now own approximately 64 percent of the combined company, which is named Spectrum Brands Holdings, Inc.
In connection with this transaction, Spectrum Brands Holdings Inc. closed on its refinancing of Spectrum Brands' existing senior debt and a portion of Russell Hobbs' existing senior debt through a combination of a new $750 million term loan due 2016, new $750 million senior secured notes due 2018, and a new $300 million ABL revolving facility due 2014. This refinancing provides extended maturities and an enhanced long-term capital structure for the combined companies. Shares of Spectrum Brands Holdings, Inc. trade on the New York Stock Exchange under the symbol "SPB."
The Paul, Weiss team representing Russell Hobbs includes corporate partners Eric Goodison, Jeff Marell, Ray Russo, Mark Underberg and Steve Williams, counsel Bruce Gruder and Didier Malaquin, associates Samuel Ault, Danijela Gazibara, Noah Gold, Courtney Haraguchi, Seth Horwitz, Marta Kelly, Amit Khanna, Benjamin Kostrzewa, Melissa Mao, Lea Mosena, Sarah Mudho, Daniel Mun, Brett Nadritch, Aun Singapore, Nicholas Smolansky, Alykhan Sunderji, Marshall Yuan, Pearl Yuan-Garg and Ehsan Zargar, former associate Beatrix Bong, and paralegal Brooke Spiegel; tax partner Rick Bronstein, counsel Alyssa Wolpin, and associates Colin Kelly and Mashiho Yuasa; employee benefits partner Larry Witdorchic, counsel Maureen Riley, and associates Lisa Eisenberg and Reuven Falik; real estate partner Peter Fisch and associate Brandilyn Dumas; intellectual property counsel Claudine Meredith-Goujon and associate Zoe Hilden; litigation partners Bruce Birenboim, Joyce Huang and Stephen Lamb, and associate D. Mark Cave; and environmental counsel Bill O'Brien. The team was provided valuable assistance by summer associates Sam Welt and Jing Cao, and paralegals Ron Conliffe, Brian Kauffman, Hilary Ranucci and Richard Scudder.