SPEB Spectrum Brands Feb 2010 Merger Presentation

8/14/2019 SPEB Spectrum Brands Feb 2010 Merger Presentation

1/14

emrfmr wjtb


2/14

Jeparthkt JklarehtjakLATVHTO-CAAIJKF W_H_MEMK_W

Gmrthjk ehttmrs ojsgussmo jk tbjs prmsmkthtjak, wjtb tbm mxgmptjak al bjstarjghc ehttmrs, ehy dm larwhro-caaijkf sthtmemkts wjtbjk tbm emhkjkf al tbm ^rjvhtm Wmgurjtjms Cjtjfhtjak Tmlare Hgtal 8::=. _bmsm sthtmemkts hrm sud`mgt ta h kuedmr al rjsis hko ukgmrthjktjms tbht gauco ghusm rmsucts ta ojllmr ehtmrjhccy lrae tbasm hktjgjphtmo hs al tbm ohtm al tbjs prmsmkthtjak. Hgtuhcrmsucts ehy ojllmr ehtmrjhccy hs h rmsuct al (8) Wpmgtrue Drhkos hdjcjty ta ehkhfm hko atbmrwjsm gaepcy wjtb jts gavmkhkts wjtb rmspmgt ta jts sjfkjljghkt autsthkojkf jkomdtmokmss, (4)Wpmgtrue Drhkos hdjcjty ta jomktjly, omvmcap hko rmthjk imy mepcaymms, (7) rjsis tbht gbhkfms hko omvmcapemkts jk mxtmrkhc gaepmtjtjvm ehrimt lhgtars, sugb hs jktraougtjak al kmw praougtlmhturms ar tmgbkacafjghc omvmcapemkts, omvmcapemkt al kmw gaepmtjtars ar gaepmtjtjvm drhkos ar gaepmtjtjvm praeatjakhc hgtjv jty ar spmkojkf, (?) gbhkfms jk gaksuemr omehko lar tbmvhrjaus typms al praougts Wpmgtrue Drhkos allmrs, (=) uklhvarhdcm omvmcapemkts jk tbm fcadhc grmojt ehrimts, () uklhvarhdcm wmhtbmr gakojtjaks hko vhrjausatbmr rjsis hko ukgmrthjktjms, jkgcuojkf tbasm ojsgussmo bmrmjk hko tbasm smt lartb jk Wpmgtrue Drhkos smgurjtjms ljcjkfs, jkgcuojkf tbm east rmgmktcy ljcmo Hkkuhc Tmpart ak Lare 8>-I arXuhrtmrcy Tmparts ak Lare 8>-X. Wpmgtrue Drhkos hcsa ghutjaks tbm rmhomr tbht jts mstjehtms al trmkos, ehrimt sbhrm, rmthjc gaksueptjak al jts praougts hko rmhsaks lar gbhkfms jk sugbgaksueptjak hrm dhsmo sacmcy ak cjejtmo ohth hvhjchdcm ta Wpmgtrue Drhkos hko ehkhfmemkts rmhsakhdcm hssueptjaks hdaut ehrimt gakojtjaks, hko gaksmqumktcy ehy dm jkhggurhtm, arehy kat rmlcmgt sjfkjljghkt smfemkts al tbm rmthjc ehrimt.

Wpmgtrue Drhkos hcsa ghutjaks tbm rmhomr tbht ukoum rmcjhkgm sbauco kat dm pchgmo ak hky larwhro-caaijkf sthtmemkts, wbjgb spmhi akcy hs al tbm ohtm al tbjs prmsmkthtjak. WpmgtrueDrhkos ukomrthims ka outy ar rmspaksjdjcjty ta upohtm hky al tbmsm larwhro-caaijkf sthtmemkts ta rmlcmgt mvmkts ar gjrguesthkgms hltmr tbm ohtm al tbjs prmsmkthtjak ar ta rmlcmgt hgtuhcautgaems.

Jk hoojtjak, tbm laccawjkf lhgtars, heakf atbmrs, gauco ghusm hgtuhc rmsucts ta ojllmr ehtmrjhccy lrae tbasm smt lartb jk tbm larwhro-caaijkf sthtmemkts0 tbm lhjcurm al Wpmgtrue Drhkosstagibacomrs hko Tussmcc Badds stagibacomrs ta hppravm tbjs trhkshgtjak9 tbm rjsi tbht tbm dusjkmssms wjcc kat dm jktmfrhtmo suggmssluccy9 tbm rjsi tbht sykmrfjms wjcc kat dm rmhcjzmo9 tbm rjsitbht rmqujrmo gaksmkts wjcc kat dm adthjkmo9 tbm rjsi tbht tbm gaedjkmo gaephky laccawjkf tbjs trhkshgtjak wjcc kat rmhcjzm ak jts ljkhkgjkf strhtmfy cjtjfhtjak jk rmspmgt al mjtbmr gaephky artbjs trhkshgtjak9 hko ojsruptjak lrae tbjs trhkshgtjak ehijkf jt earm ojlljguct ta ehjkthjk gmrthjk strhtmfjg rmchtjaksbjps. Hoojtjakhc lhgtars tbht ehy hllmgt luturm rmsucts hko gakojtjaks hrm

omsgrjdmo jk Wpmgtrue Drhkos ljcjkfs wjtb tbm WMG, wbjgb hrm hvhjchdcm ht tbm WMGs wmd sjtm ht www.smg.fav ar ht Wpmgtrue Drhkos wmdsjtm ht www.spmgtruedrhkos.gae.

_bm laccawjkf scjoms gakthjk sueehrjms al gmrthjk ljkhkgjhc hko sthtjstjghc jklarehtjak hdaut Wpmgtrue Drhkos hko Tussmcc Badds. _bm jklarehtjak gakthjkmo jk tbjs prmsmkthtjak js sueehryjklarehtjak tbht js jktmkomo ta dm gaksjomrmo jk tbm gaktmxt al Wpmgtrue Drhkos hko Tussmcc Badds WMG ljcjkfs, jl hky, hko atbmr pudcjg hkkaukgmemkts tbht tbmy ehy ehim, dy prmssrmcmhsm ar atbmrwjsm, lrae tjem ta tjem. Jk hoojtjak, jklarehtjak rmchtmo ta phst pmrlarehkgm, wbjcm bmcpluc hs hk mvhcuhtjvm taac, js kat kmgmsshrjcy jkojghtjvm al luturm rmsucts, tbmhgbjmvmemkt al wbjgb ghkkat dm hssurmo. Zau sbauco kat vjmw tbm phst pmrlarehkgm al Wpmgtrue Drhkos ar Tussmcc Badds, ar jklarehtjak hdaut tbm ehrimt, hs jkojghtjvm al WpmgtrueDrhkos ar Tussmcc Badds luturm rmsucts ar tbm patmktjhc luturm rmsucts al tbm gaedjkmo gaephky laccawjkf gaksueehtjak al tbm _rhkshgtjak. Lurtbmr, pmrlarehkgm jklarehtjak rmspmgtjkfjkvmstemkt rmturks ak partlacja trhkshgtjaks js kat ojrmgtcy mqujvhcmkt ta rmturks ak hk jkvmstemkt jk Wpmgtrue Drhkos ar Tussmcc Badds gaeeak stagi.

_bjs prmsmkthtjak js kat h sacjgjthtjak al h praxy lrae hky stagibacomrs al Wpmgtrue Drhkos ar Tussmcc Badds ar hk allmr ta smcc ar tbm sacjgjthtjak al hk allmr ta duy hky smgurjtjms alWpmgtrue Drhkos ar Tussmcc Badds. _bm laccawjkf scjoms gakthjk jklarehtjak jk rmspmgt al mhgb al Wpmgtrue Drhkos hko Tussmcc Badds. Kmjtbmr gaephky ehims hky rmprmsmkthtjak hs tatbm hggurhgy al tbm atbmr gaephkys jklarehtjak. Hctbaufb tbm gaephkjms sjfkmo h emrfmr hfrmmemkt hs prmvjauscy rmpartmo hko ljcmo wjtb tbm WMG, tbm gaephkjms rmehjk jkompmkomkths al tbm ohtm bmrmal.

JEÂT_HK_ HOOJ_JAKHC JKLATEH_JAK VJCC DM LJCMO VJ_B _BM WMG

_bjs Gaeeukjghtjak js dmjkf ehom jk rmspmgt al tbm prapasmo dusjkmss gaedjkhtjak jkvacvjkf Wpmgtrue Drhkos hko Tussmcc Badds. Jk gakkmgtjak wjtb tbm prapasmo trhkshgtjak, WpmgtrueDrhkos pchks ta ljcm wjtb tbm WMG h Tmfjstrhtjak Wthtmemkt ak Lare W-? tbht jkgcuoms tbm praxy sthtmemkt al Wpmgtrue Drhkos hko tbht hcsa gakstjtutms h praspmgtus al Wpmgtrue Drhkos._bm omljkjtjvm ^raxy Wthtmemkt/^raspmgtus wjcc dm ehjcmo ta stagibacomrs al Wpmgtrue Drhkos. JK\MW_ATW HKO WMG]TJ_Z BACOMTW AL W^MG_T]E DTHKOW HTM ]TFMO _ATMHO _BM ^TARZ W_H_MEMK_/^TAW^MG_]W HKO A_BMT OAG]EMK_W LJCMO V J_B _BM WMG GHTML]CCZ JK _BMJT MK_JTM_Z VBMK _BMZ DMGAEM H\HJCHDCM DMGH]WM_BMZ VJCC GAK_HJK JEÂT_HK_ JKLATEH_JAK HDA]_ _BM ^TAÂWMO _THKWHG_JAK.

Jkvmstars hko smgurjty bacomrs wjcc dm hdcm ta adthjk lrmm gapjms al tbm Tmfjstrhtjak Wthtmemkt hko ^raxy Wthtmemkt/^raspmgtus (wbmk hvhjchdcm) hko atbmr oaguemkts ljcmowjtb tbm WMG dy Wpmgtrue Drhkos tbraufb tbm wmd sjtm ehjkthjkmo dy tbm WMG ht www.smg.fav. Lrmm gapjms al tbm Tmfjstrhtjak Wthtmemkt hko ^raxy Wthtmemkt/^raspmgtus(wbmk hvhjchdcm) hko atbmr oaguemkts ljcmo wjtb tbm WMG ghk hcsa dm adthjkmo ak Wpmgtrue Drhkos wmdsjtm ht www.spmgtruedrhkos.gae.

^TARZ WACJGJ_H_JAK

Wpmgtrue Drhkos, Tussmcc Badds hko tbmjr rmspmgtjvm ojrmgtars, mxmgutjvm alljgmrs hko gmrthjk atbmr emedmrs al ehkhfmemkt hko mepcaymms ehy dm sacjgjtjkf praxjms lrae WpmgtrueDrhkos hko Tussmcc Badds stagibacomrs jk lhvar al tbm hgqujsjtjak. Jklarehtjak rmfhrojkf tbm pmrsaks wba ehy, ukomr tbm rucms al tbm WMG, dm gaksjomrmo phrtjgjphkts jk tbm sacjgjthtjak altbm Wpmgtrue Drhkos hko Tussmcc Badds stagibacomrs jk gakkmgtjak wjtb tbm prapasmo hgqujsjtjak wjcc dm smt lartb jk tbm ^raxy Wthtmemkt/^raspmgtus wbmk jt js ljcmo wjtb tbm WMG. Zau ghkljko jklarehtjak hdaut Wpmgtrue Drhkos mxmgutjvm alljgmrs hko ojrmgtars jk jts hkkuhc rmpart ak Lare 8>-I ljcmo wjtb tbm WMG ak Omgmedmr 4:, 4>>:. Zau ghk adthjk lrmm gapjms al tbmsmoaguemkts lrae Wpmgtrue Drhkos jk tbm ehkkmr smt lartb hdavm.


3/14

4

^awmrluc gaedjkhtjak0 $7D fcadhc gaksuemr praougts gaephky

Mxtmkos fcadhc rmhgb hko ehrimt cmhojkf drhkos

Httrhgtjvm mgakaejgs lar sbhrmbacomrs

Wtrmkftbmks ghpjthc strugturm hko rmougms ljkhkgjhc rjsi

Tmougms hko cawmrs gast al gaedjkmo omdt

Jepravms cmvmrhfm

Mxtmkos omdt ehturjtjms

Mkbhkgms cjqujojty hko jkgrmhsms ghpjthc hvhjchdcm lar frawtb

+
http://spectrumbrands.com/http://www.russellhobbsinc.com/http://spectrumbrands.com/


4/14

7

^awmrluc Gaedjkhtjak

Grmhtms kmw fcadhc gaksuemr praougts gaephky

$7D jk rmvmkums0 $4.4D Wpmgtrue Drhkos, $>.2D Tussmcc Badds

Ghrrjmo jk avmr 8 ejccjak rmthjc autcmts dy imy rmthjcmrs fcadhccy

$?7> ejccjak ta $??> ejccjak al ljsghc 4>8> mstjehtmo ho`ustmo MDJ_OH

Gaedjkmo partlacja jkgcuoms wjomcy rmspmgtmo fcadhc drhkos jkgcuojkf0

Tmejkftak, Thyavhg, \HT_H, Wpmgtrhgjom, Guttmr, Bat Wbat, _mtrh, 2 jk 8, Ojkfa

Tussmcc Badds, Fmarfm Larmehk, Dchgi & Omgimr, Cjttmrehjo, _ahstehstmr

Grmhtms h prmejmr pmrsakhc ghrm hko ijtgbmk mcmgtrjg hppcjhkgm gaephky

Mxphkos praougt partlacja, kmw praougt pjpmcjkm hko drhkos

^ravjoms frmhtmr sghcm hko dujcos strakfmr, earm mlljgjmkt fcadhc suppcy gbhjk

Cmvmrhfms fcadhc jklrhstrugturm jkgcuojkf shcms, ojstrjdutjak, hko hoejk

Mxphko fcadhc shcms wjtbjk hko hgrass dusjkmss ukjts al mhgb gaephky

Mxpmgtmo ta fmkmrhtm $4=-7> ejccjak al sykmrfjms


5/14

Cjim Wpmgtrue, Tussmcc Badds Bhs Wtrakf,Cakf-Wthkojkf Fcadhc Gustaemr Tmchtjaksbjps


6/14

=

Fcadhc

Dhttmrjms

& mrsakhc

Ghrm

%

Murapm /

Tmst al tbm

Varco

77%

^mrsakhc

Ghrm

8%

Ijtgbmk

^raougts

6:%

^mt & ^mst

7%

Baem

^raougts

86% Ijtgbmk

^raougts

4>%

Fcadhc ^mt

4>%

Fcadhc

Dhttmrjms

& mrsakhc

Ghrm

?=%Baem &

Fhromk

88%

Baem

^raougts?%

Kartb

Hemrjgh

=2%

Chtjk

Hemrjgh

88%

Murapm /

Tmst al tbm

Varco

78%

Kartb

Hemrjgh


7/14

ejccjak

Tussmcc Badds drhko partlacja + Wpmgtrues fcadhc ojstrjdutjak jklrhstrugturm

Dmttmr praougt pchgmemkt wjtb imy gustaemrs

Tussmcc Badds ta hggmss Wpmgtrues Dhttmrjms hko ^mrsakhc Ghrm ojstrjdutjak pchtlare

Wpmgtrue ta fmt hggmss ta Tussmcc Badds ijtgbmk hppcjhkgms praougts, drhkos hkoojstrjdutjak pchtlare

Cawmr tathc heaukt hko gast al gaedjkmo omdt Jepravmo Wpmgtrue cmvmrhfm

Mxtmkomo Wpmgtrue omdt ehturjtjms

Mkbhkgmo cjqujojty ta cawmr rjsi hko hccaw jkgrmhsmo dusjkmss rmjkvmstemkt

Wtrakf gaedjkmo apmrhtjkf ghsb lcaws

Datb Wpmgtrue hko Tussmcc Badds bhvm mxpmrjmkgms jk suggmssluc emrfmrs hko

jktmfrhtjak wjcc usm phst mxpmrjmkgms ta ejkjejzm rjsi hko ehjkthjk hppraprjhtm lagusH laurtb ojstjkgt dusjkmss ukjt cmo dy _mrry ^acjstjkh wjcc dm smt up lar Baem Hppcjhkgms

Mxjstjkf Wpmgtrue dusjkmssms wjcc rmehjk hutakaeaus wjtb cmhomrsbjp tmhe jk pchgm


10/14

Wtrmkftbmkmo Ghpjthc Wtrugturm


Tussmcc Badds $8=2 ejccjak tmre cahk gakvmrtmo ta KmwGa mqujty

Tussmcc Badds $4>6 ejccjak prmlmrrmo stagi gakvmrtmo ta KmwGa mqujty

Kmw $6=> ejccjak tmre cahk

Kmw $6=> ejccjak smkjar smgurmo katms

Jepravms cmvmrhfm

^ra`mgtmo cmvmrhfm ta dm hppraxjehtmcy 7.2x ht Ljsghc 4>8> ymhr mko


Ehturjtjms mxtmkomo lrae 4>84 ta 4>8< (tmre cahk) hko 4>86 (katms)


Kmw $7>> ejccjak HDC rmvacvmr wjtb h ? ymhr tmre

:


11/14

8>

Imy _rhkshgtjak _mres

Tussmcc Badds hko Wpmgtrue emrfm jkta KmwGa tbraufb stagi-lar-stagi trhkshgtjak

Imy trhkshgtjak tmres0

Wpmgtrue Drhkos0 mktmrprjsm vhcum al $4.< djccjak ($78.=> pmr sbhrm)

Tussmcc Badds0 mktmrprjsm vhcum al $6ejccjak al Tussmcc Badds prmlmrrmo stagi hko $8=2 ejccjak al Tussmcc Badds tmre cahklar KmwGa sbhrms vhcumo ht $78.=> pmr sbhrm

Ljkhkgjkf gaeejtemkt lrae Grmojt Wujssm, Dhki al Hemrjgh, hko Omutsgbm Dhki tarmljkhkgm rmehjkjkf omdt

_rhkshgtjak mxpmgtmo ta gcasm jk sueemr 4>8>

Gaepmccjkf mgakaejgs lar datb phrtjms hko tbmjr sbhrmbacomrs


12/14

88

_rhkshgtjak Mxpmgtmo ta Gcasm Wueemr 4>8>

Gakojtjaks ta gcasm jkgcuom0

Hppravhc al sbhrmbacomrs

Eh`arjty al hcc bacomrs al W^MD(Bhrdjkfmr hko Hvmkum Ghpjthc bhvm sthtmo tbmjr jktmkt ta hppravm)

Hko, eh`arjty al tbm bacomrs al W^MD atbmr tbhk Bhrdjkfmr

BWT hko atbmr hktjtrust hppravhcs

Gcasm al kmw ljkhkgjkf hfrmmemkts

?= ohy fa sbap

Atbmr gustaehry rmqujrmemkts ta gcasm


13/14

84

Garparhtm Favmrkhkgm

Emrfmr pragmss

Tmgaeemkomo dy hk jkompmkomkt Wpmgjhc

Gaeejttmm al Wpmgtrue Dahro al Ojrmgtars

Dhrgchys Ghpjthc Jkg. hgtmo hs ljkhkgjhchovjsar hko @akms Ohy hgtmo hs cmfhcgauksmc ta tbm Wpmgjhc Gaeejttmm

Hppravhc rmqujrms h eh`arjty al kak-Bhrdjkfmr Ghpjthc stagibacomrs

"Fa-Wbap" pragmss (?= ohy) ta mkhdcmsacjgjthtjak al supmrjar prapashcs

Bhrdjkfmr Ghpjthc hfrmmo ta suppart jl

hppravmo dy 4/7ros

al kak-Bhrdjkfmrstagibacomrs

$8 ejccjak drmhi-up lmm, pcus up ta $8>ejccjak al mxpmksms jl Wpmgtrue hggmptssupmrjar prapashc

Hltmr gcasjkf

_mk-emedmr Dahro, jkgcuojkf GMA hko

tbrmm ojrmgtars jkompmkomkt al BhrdjkfmrGhpjthc

Gchssjljmo Dahro ta hssurm jkompmkomktojrmgtars rmehjk (akm jk 4>84 gchss9 twa jk4>87 gchss)

Wpmgjhc Kaejkhtjkf Gaeejttmm("Jkompmkomkt Gaeejttmm") al jkompmkomktojrmgtars ta kaejkhtm suggmssars

Jkompmkomkt Gaeejttmm hppravhc rmqujrmolar rmchtmo phrty trhkshgtjaks, fajkf-prjvhtm

trhkshgtjaks, mtg.

Gaephky ta rmehjk h pudcjg gaephky hkosmmi ta cjst gaeeak stagi ak KZWM


14/14

87

^awmrluc gaedjkhtjak0 $7D fcadhc gaksuemr praougts gaephky

Mxtmkos fcadhc rmhgb hko ehrimt cmhojkf drhkos

Httrhgtjvm mgakaejgs lar sbhrmbacomrs

Wtrmkftbmks ghpjthc strugturm hko rmougms ljkhkgjhc rjsi


Jepravms cmvmrhfm



+
http://spectrumbrands.com/http://www.russellhobbsinc.com/http://spectrumbrands.com/

Documents

SPEB Spectrum Brands Feb 2010 Merger Presentation