Rayovac in $1.2 Billion Deal

Rayovac Corp. ( ROV ) Tuesday said it will acquire privately held United Industries Corporation in a deal valued at $1.2 billion.

Under terms of the deal, Atlanta-based Rayovac will issue 13.75 million shares of its common stock to United shareholders and also pay them $70 million in cash.

The deal also includes the assumption of approximately $880 million of United debt and a cash tax benefit of $140 million.

This acquisition of St. Louis-based United extends Rayovac's household products offerings into the lawn and garden and specialty pet-supply categories.

"This is a truly transforming transaction for Rayovac, representing a major step forward toward our goal of achieving annual revenues of $3 billion," the company said.

Rayovac, which is best known for its batteries, said the transaction will be slightly accretive to earnings before synergies in the first year. The company anticipates gross synergies, or cost savings, of approximating $70 million to $75 million, before one-time costs, over a three-year period.

The transaction is expected to close in February.

Shares ended at $29.56 Monday.

More from Opinion

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Time to Talk Tesla: What Happened This Week, Elon?

Time to Talk Tesla: What Happened This Week, Elon?

Apple Needs to Figure Out Its Self-Driving Vehicle Strategy

Apple Needs to Figure Out Its Self-Driving Vehicle Strategy

Throwback Thursday: Tesla, Chip Stocks, TheStreet's Picks

Throwback Thursday: Tesla, Chip Stocks, TheStreet's Picks