Spectrum Brands Spin-off Notes

July 11, 2024 Update

On July 2, 2024, Spectrum Brands (SPB) announced that it has filed a confidential Form 10 with the SEC related to its Home and Personal Care business.

Spectrum Brands Holdings, Inc. operates as a branded consumer products and home essentials company. It trades at a a PE multiple of 18x and an EV/EBITDA multiple of 8.4x. With the spin-off, RemainCo will be focused on the Global Pet Care and Home & Garden market.

The spin-off which is focused on home and person care competes with Shark Ninja (SN) and has been struggling of late. I will build out my sum-of-the-parts model, but initial sell side notes that I’ve read suggest that the transaction will not unlock value.