The recapitalization of Jacuzzi Brands
Jacuzzi Brands LLC announced the completion of its financial recapitalization on Tuesday, a move aimed at reducing its debt burden and freeing up liquidity to take advantage of the improving economic outlook.
The transaction has reduced Jacuzzi’s debt by about $124 million and extended the maturity dates of its loans to 2018 and beyond, made possible by a new ABL facility of $35 million (undrawn at close) and a new term loan in place of $80 million.
Jacuzzi’s primary equity sponsors, Ares Management, Apollo Global Management and Clearlake Capital Group, all lent a hand in converting debt to additional equity.
"The willingness of our sponsors to take a larger equity position in the company puts us in a strong position to capitalize on the improving global economy," said Bob Rowan, president and CEO of Jacuzzi Brands. "This transaction would not be possible without the continued support of our employees, dealers and suppliers who all believe in the tremendous growth potential of our portfolio companies and brands."
HBC acquires WordLock
Cranbury, N.J.-based HBC Home & Hardware Products, formerly the Howard Berger Co., acquired WordLock, maker of bike locks, padlocks and travel locks.
"WordLock brings an unparalleled record of success to HBC," said James Brower, CEO of HBC Home & Hardware Products. "In a few short years, WordLock has reinvented the personal security market with innovation ad design and created a recognizable brand name that can be found in all of the leading retailers across North America."
WordLock uses a multi-patented word combination system to open and close the locks.
"The concept of using letters and words rather than numbers has been universally tested to be more memorable and accommodating to all people both young and old," said Todd Basche, CEO of WordLock.
HBC Home & Hardware Products is described as a consumer products company spanning 13,000 items and more than 25 categories.
Fastenal reports sales gains in Q2
Winona, Minn.-based Fastenal Co. reported second-quarter sales of $847.6 million, up 5.3% from the same quarter last year. The company’s net earnings increased 7.7% in the quarter to $121.0 million.
Fastenal had 2,677 stores as of June 30 and at the same time operated 29,549 FAST Solutions industrial vending machines. During the first six months, Fastenal opened 33 new stores.
"Our growth in net sales was impacted by inflationary price changes in our non-fastener products and some price deflation in our fastener products, but the net impacts were limited," the company said in a statement.