Spectrum Brands Holdings Inc.
) 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.
HOMEAWAY INC (AWAY): Free Stock Analysis
SEAWORLD ENTERT (SEAS): Free Stock Analysis
SPECTRUM BRANDS (SPB): Free Stock Analysis
SMITH & WESSON (SWHC): Free Stock Analysis
To read this article on Zacks.com click here.
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
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
Smith & Wesson Holdind Corp.
SeaWorld Entertainment Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).