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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 year ended June 30

* Spectrum shares rise 10 pct in premarket trade

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

Oct 9 (Reuters) - Spectrum Brands Holdings Inc will buy 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.

Stanley Black & Decker joins several other industrial conglomerates in selling off units to focus on faster-growing businesses.

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

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

The acquisition 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, Spectrum said.

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.

Spectrum already sells small home appliances under the Black & Decker brand under a licensing agreement that runs through 2015.

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

Spectrum's shares were up 10 percent at $45.25 in premarket trading. Stanley Black & Decker shares were untraded after closing at $74.23 on Monday.

(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/