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
We are excited to announce the acquisition of the Tristar Business by our Home and Personal Care (“HPC”) segment this morning. The strategic combination of the Tristar Business with our HPC segment represents an exciting key milestone in our pursuit to create a leading higher-margin and faster-growing appliances platform.David Maura, Chairman and Chief Executive Officer, Spectrum Brands
I am a big believer in the future prospects of this business under Spectrum Brands’ ownership and I am excited to have the deal structured to allow me to participate in the future financial performance of the business.Keith Mirchandani, Founder and Chief Executive Officer, Tristar Products, Inc.
Advisory firms were not disclosed for this transaction.