Spectrum Brands Reports Q1 Results, Announces Separation of HPC

Spectrum Brands Holdings, Inc. (NYSE:SPB) reported earnings results for Q1, with revenue coming in at $379.7 million, driven by strong holiday sales in Latin America, partially offset by a sales decline from product availability due to supply-chain constraints. Adjusted EBITDA of $49.3 million missed the Street estimate of 58.1 million, owing to inflation/supply-chain headwinds.

The company announced the separation of the HPC segment. As part of the spin, the company announced the acquisition of Tristar Products' appliance and cookware business for $325 million, with $100 million and $25 million contingent on 2022 and 2023 gross profit targets, respectively. The combined business is estimated to generate around $142 million of EBITDA and will combine with HPC, and will be separated via a spin-off, IPO, or merger. The transaction is expected to close within the next 90 days.