Logitech Unveils a $1 Billion Share Repurchase – Buyback Wednesdays

Spectrum Brands (SPB), authorized a substantial buyback program, amounting to $1 billion, which represented approximately 33% of its market capitalization at the time of the announcement. This impressive announcement positioned it at the top of our list of largest buyback announcements.

Spectrum Brands Holdings (SPB) was established in 2005 as the successor company to Rayovac Corporation. It operates as a global consumer products and home essentials company, having expanded its product portfolio and global presence through various acquisitions. Although the company faced bankruptcy in 2009, it has been making headlines in recent years.

On September 8, 2021, Spectrum Brands announced a significant reorganization by agreeing to sell its Hardware and Home Improvement business (HHI) to ASSA ABLOY for $4.3 billion in cash. ASSA ABLOY specializes in locks, doors, gates and entrance automation.

The Department of Justice (DOJ) filed a lawsuit on September 15, 2022, seeking to block the HHI sale. This battle with the DOJ was covered extensively by event-driven investors including Chris Demuth Jr. on Andrew Walker’s Yet Another Value Podcast, where Andrew summarized the situation succinctly when he said:

The DOJ opposed this deal. The reason they opposed it was part of the business they were selling was very high end locks, as ABLOY had very high end locks. They were saying that this is going to be a monopoly if you guys combined the 2 high-end locks business. As ABLOY and Spectrum said, “Hey, we’ll, sell the high-end locks business. Don’t worry about it. It’s a kind of small piece of their overall deal.” Entered a deal to sell the high-end locks business to Fortune, and the DOJ, for reasons that are kind of unclear to me, said no.

Only plus or premium subscribers can access this post. Subscribe today.