×

UPDATE 1-Spectrum Brands to buy Stanley Black & Decker unit for $1.4 bln

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

* Unit generated sales of about $985 mln for year ended June 30

(Adds background, details, updates shares)

Oct 9 (Reuters) - Spectrum Brands Holdings Inc , the maker of Rayovac batteries and other consumer products, said it will buy a unit of Stanley Black & Decker Inc that makes door locks and bath fixtures for $1.4 billion.

The deal will give Spectrum brands such as Kwikset and Price Pfister, adding to its portfolio that includes Remington shavers and George Foreman grills. The company already sells small home appliances under the Black & Decker brand.

The deal will add between 75 cents and 80 cents per share to Spectrum's pro-forma earnings in 2013, rising to more than $1.00 per share in 2014, the company said in a statement.

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

The unit being bought by Spectrum contributed 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.

Reuters reported in September that Stanley Black and Decker was in final discussions with Spectrum to sell the business.

Spectrum's shares closed at $41.16 and Stanley Black & Decker closed at $74.23 on Monday on the New York Stock Exchange.

(Reporting by Siddharth Cavale; Editing by Saumyadeb Chakrabarty)

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

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

Keywords: SPECTRUMBRANDS ACQUISITION/