Spectrum Brands puts asset sale on hold

By Lisa Kerner

Charlotte, N.C., Oct. 17 - Spectrum Brands, Inc. said it is postponing its previously announced strategic asset sale process citing "recent challenging conditions in the credit markets."

"We are still committed to reducing outstanding indebtedness and leverage through the sale of assets," chief executive officer Kent Hussey stated in a company news release.

"We believe that postponing the auction process until such time as the credit markets improve will allow us to achieve a full and fair valuation of these assets."

On Oct. 1, the company placed a $225 million asset-based revolving credit facility that it said provides enough liquidity to operate its business on an ongoing basis.

It was previously reported that a sale of the unnamed Spectrum asset would help restore "a more normal capital structure to the business as quickly as possible." The decision to sell the asset came from management, the board and its outside advisers and not at the urging of a specific buyer, Hussey had said.

During an Aug. 7 conference call, Spectrum reported disappointing third-quarter financial results with lower-than-expected sales. However, Hussey noted that cash was not an issue for the company and that Spectrum had sufficient liquidity even without the sale of an asset.

Spectrum Brands is an Atlanta-based consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticide.

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