Spectrum Brands Expands Product Line - Analyst Blog

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Spectrum Brands Holdings Inc. ( SPB ) ventured into a new product line with the acquisition of leading animal repellents company The Liquid Fence Company Inc. The product will form a part of the company's St. Louis-based United Industries Home and Garden division.

The Liquid Fence brand has recently gained popularity due to its extensive and growing product line, proprietary formulations and strong retailer tie-ups. It has solidified its position in the U.S. consumer animal repellents market, which is expected to deliver over double the growth rate of the overall lawn and garden category. Most popular products of the Liquid Fence brand include - Liquid Fence Deer & Rabbit Repellent, which is a unique product in the U.S. market.

Animal repellents are designed to keep a check on the entry of certain animals into gardens, homes or other specified areas. Repellents are generally made with substances to which animals have a natural aversion, like the odor of the urine of certain predators.

The acquisition of the unique Home and Garden product manufacturing company is completely in sync with Spectrum Brands' strategy of expanding its product portfolio via acquisitions. The company seeks to acquire products that complement its existing brands and categories, while also expanding its market share in line with the Spectrum Value Model. Fulfilling all requirements, the Liquid Fence brand will help the company enhance its position in the fast-growing section of the U.S. retail lawn and garden controls market that has a value of nearly $1.5 billion.

Though the company did not reveal the financial terms of the transaction, it believes that the purchase will be immediately accretive to its business, providing quick and healthy returns that justify the worth paid for the business.

The company expects the combination of the rapidly growing animal repellents category with the strong lawn and garden category of its Home and Garden division to fetch superior revenues for the company. The new product suitably complements many of Home and Garden's core strengths, including liquid production, regulated products and distribution overlap.    

Other Stocks to Consider

Currently, Spectrum Brands carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the consumer discretionary sector include HomeAway Inc. ( AWAY ), Smith & Wesson Holdind Corp. ( SWHC ) and SeaWorld Entertainment Inc. ( SEAS ). All these stocks carry a Zacks Rank #1 (Strong Buy).



HOMEAWAY INC (AWAY): Free Stock Analysis Report

SEAWORLD ENTERT (SEAS): Free Stock Analysis Report

SPECTRUM BRANDS (SPB): Free Stock Analysis Report

SMITH & WESSON (SWHC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AWAY , SEAS , SPB , SWHC

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