Jefferies Group
Kwikset and Pfister, two of Spectrum's brands.

Jefferies Financial Group (JEF) plans to spin out a 15.4% stake in Spectrum Brands Holdings (SPB - Get Report) to its holders.

In a Monday statement the New York investment bank said it would issue a dividend to its holders of 7.5 million Spectrum Brands shares that it holds.

The dividend amounts to about one share of Spectrum Brands for each 40 shares of Jefferies held. The dividend is payable Oct. 11 to Jefferies holders of record Sept. 30.

Jefferies Chief Executive Rich Handler and President Brian Friedman said in a statement that the dividend reflects the company's effort to simplify its structure and return "excess capital to our shareholders in whatever form is appropriate."

Spectrum Brands is the Middleton, Wis., parent of a variety of consumer brands, including, among others, Black Flag pesticides, Pfister kitchen and bathroom appliances, Kwikset and Weiser locks and security equipment, and, in Europe, Iams and Eukanuba pet-care products.

On Monday Jefferies fell 13 cents, or 0.6%, to close at $2020. Spectrum Brands shares fell $3.58, or 6%, to $56.45.