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CORRECTED(OCT 9)-UPDATE 3-Spectrum buys Stanley B&D unit for $1.4 bln, shares jump

(Corrects identity of S&P Capital IQ analyst in paragraph 11)

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

* Stanley B&D unit generated sales of about $985 mln foryear ended June 30

* Spectrum shares rise as much as 14 percent

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 as much as 14 percent to theirhighest since the company emerged from bankruptcy in 2009, asinvestors welcomed the boost in earnings the deal promises.

The acquisition, Spectrum's biggest ever, will boost itsrevenue 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.

Stanley Black and Decker said in August it was reviewingstrategic alternatives for the unit so it could concentrate onhigher margin businesses such as hand and power tools.

These businesses fall under Stanley Black & Decker'sConsumer and Do-it-Yourself segment, which generated more thanhalf of the company's revenue of $10.4 billion in 2011.

The locks and bath fixture business accounted for 9 percentof the company's revenue in 2011, generating net sales of about$985 million for the 12 months ended June 30.

The deal will add between 75 cents and 80 cents per share toSpectrum's pro-forma earnings in 2013, rising to more than $1.00per share in 2014, Spectrum said. For 2012, analysts haveestimated earnings of $2.41 per share, before items.

BWS Financial analyst Hamed Khorsand said investors wereencouraged by the prospect of new growth opportunities forSpectrum as well as the boost to earnings the deal provides.

Stanley Black & Decker's shares slipped 0.75 percent in latemorning trading on the New York Stock Exchange.

"We think the sale will aid (Stanley Black & Decker) byadjusting its business focus, and provide it with cash for sharerepurchases, debt reductions and its planned acquisition ofInfastech," S&P Capital IQ analyst Michael Jaffe said in a note.

The company is in the process of buying privately heldInfastech, a Singapore-based maker of engineered mechanicalfasteners, for $850 million to expand in emerging markets.

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.

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

Spectrum, whose products also include Cutter bug spray andGeorge Foreman grills, already sells Black & Decker brand smallhome appliances under a licensing agreement.

The company will fund the deal with a term loan of about$1.8 billion and with financing from Deutsche Bank and Barclays,the company said.

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 11 percent at $45.73 on Tuesday onthe New York Stock Exchange.

(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/