Wires

UPDATE 2-Spectrum buys Stanley B&D unit for $1.4 bln, shares jump

* Expects deal to add $0.75-$0.80 to pro forma EPS in 2013

* Acquired unit generated sales of about $985 mln for yearended June 30

* Spectrum shares rise 10 pct in premarket trade

(Adds background, details, bullets; updates share movement)

Oct 9 (Reuters) - Spectrum Brands Holdings Inc willbuy Stanley Black & Decker Inc's door lock and bathfixture business for $1.4 billion, adding brands such as Kwiksetand Price Pfister to a line-up that includes Rayovac batteriesand Remington shavers.

Shares of Spectrum rose 10 percent in trading before thebell 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 willincrease total revenues to over $4 billion," Spectrum ChiefExecutive Dave Lumley said in a statement.

The locks and bath fixture business accounted for 9 percentto Stanley Black and Decker's revenue in 2011, generating netsales of about $985 million for the 12 months ended June 30.

Stanley Black & Decker joins several other industrialconglomerates in selling off units to focus on faster-growingbusinesses.

Under the deal, Spectrum will also acquire some assets ofTong Lung Metal Industry Co Ltd, a Taiwan manufacturer ofresidential and commercial locksets.

Spectrum will fund its biggest-ever deal with a term loanand financing from Deutsche Bank and Barclays, the company said.

The acquisition will add between 75 cents and 80 cents pershare to Spectrum's pro-forma earnings in 2013, rising to morethan $1.00 per share in 2014, Spectrum said.

Stanley Black & Decker makes hardware, hand and power toolsand industrial equipment. The company was created in 2010through a $4.5 billion merger that combined Stanley'sblack-and-yellow hand tools with Black & Decker's power tools.

Spectrum already sells small home appliances under the Black& Decker brand under a licensing agreement that runs through2015.

Reuters reported in September that Stanley Black and Deckerwas in final discussions with Spectrum to sell the business,after Apollo Global Management LLC dropped out of thebidding.

Spectrum's shares were up 10 percent at $45.25 in premarkettrading. Stanley Black & Decker shares were untraded afterclosing at $74.23 on Monday.

(Reporting by Siddharth Cavale; Editing by SaumyadebChakrabarty)

((siddharth.cavale@thomsonreuters.com)(1-646-223-8780)(Reuters

Messaging: siddharth.cavale.thomsonreuters.com@reuters.net))

Keywords: SPECTRUMBRANDS ACQUISITION/