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Tuesday, October 9, 2012

Spectrum buys Stanley B&D unit for $1.4 bln, shares jump, (NYSE: SPB)

Spectrum Brands Holdings Inc will purchase Stanley Black & Decker Inc's door lock and bath fixture business for $1.4 billion, adding brands such as Kwikset and Price Pfister to a line-up that includes Rayovac batteries and Remington shavers.Shares of Spectrum rose 10 percent in trading before the bell on Tuesday, suggesting investors were happy with the deal, which would boost Spectrum's revenue by a quarter."This is a good acquisition for Spectrum Brands that will increase total revenues to over $4 billion," Spectrum Chief Executive Dave Lumley said in a statement.The locks and bath fixture business accounted for 9 percent to Stanley Black and Decker's revenue in 2011, generating net sales of about $985 million for the 12 months ended June 30.

Spectrum Brands Holdings, Inc. is a consumer products company. Shares of SPB traded higher by 11.44% or $4.71/share to $45.87. In the past year, the shares have traded as low as $23.04 and as high as $42.78. On average, 167478 shares of SPB exchange hands on a given day and today's volume is recorded at 961815.