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Battery maker to buy United Industries for $476 million

Tuesday, Jan. 4, 2005 | 9:12 a.m.

Rayovac Corp., the No. 3 U.S. battery maker, agreed to buy lawn-and-garden-products manufacturer United Industries for $476 million to become less reliant on the declining battery business. The stock rose as much as 16 percent.

Rayovac will pay $406 million in shares and $70 million in cash for closely held United, which is owned by buyout firm Thomas H. Lee Partners LP, and will assume $880 million in debt, the Atlanta-based company said today. The purchase will boost earnings in the first year after completion, Rayovac said.

Chief Executive David Jones is making acquisitions to expand beyond the U.S. battery industry, whose sales fell 6.1 percent last year as larger rivals cut prices.

By adding United brands such as Cutter mosquito repellant and Vigoro fertilizer, the percentage of Rayovac's sales that come from batteries will fall to 40 from 67.

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