Favorable Relocation Economics, State of Wisconsin $4 Million Award
Enable Company to Remain in Wisconsin with Its Nearly $100 Million
Annual Impact, and Forego Move to Florida
MADISON, Wis.--(BUSINESS WIRE)--Jan. 19, 2012--
Spectrum Brands Holdings, Inc. (NYSE: SPB) announced today it plans to
move its world headquarters, several North American divisional
operations and its technology center, in all totaling more than 500
full-time employees, to a more economical and energy-efficient facility
in the Discovery Springs area of Middleton, Wisconsin, a suburb of
Madison, by the end of 2013.
The Company said annual cost savings and major space efficiencies
provided by the facility in Middleton, coupled with a recent five-year,
$4 million award (or $800,000 per year) from the Wisconsin Economic
Development Corporation (WEDC), were substantial enough to shelve plans
to move its world headquarters (recently relocated from Atlanta) and
North American Remington® personal care operations to Miramar, Florida,
where its Russell Hobbs home appliances subsidiary acquired in June 2010
already occupies a suitably sized building.
Spectrum Brands said its Middleton headquarters facility also is a more
economical and energy-efficient option than renewing the lease on its
current and long-time headquarters at 601 Rayovac Drive in Madison,
which expires on December 31, 2013. The Rayovac Drive facility is owned
by a New York-based real estate group.
“In this challenging economic environment in which companies operate, we
must reduce costs to maintain an operating structure aligned with
today’s market conditions and enable Spectrum Brands to remain
competitive and continue to grow over the long-term,” said Dave Lumley,
Chief Executive Officer of Spectrum Brands Holdings.
“We were close to a decision to move up to 300 full-time jobs from the
Madison area to Florida,” Mr. Lumley said. “Instead, we are bringing 60
to 70 professional jobs to Wisconsin, which will add to the nearly $100
million of direct annual economic impact Spectrum Brands already has on
our state, and preserve state revenue from our employee income tax
withholdings that would have been lost with a move to Florida.
“Due to delicate lease negotiations in recent weeks, it was indeed
unfortunate for all parties concerned that we could not communicate this
decision earlier that Spectrum Brands will remain in Wisconsin by
relocating to a more economical building in Middleton,” Mr. Lumley said.
The Company, which changed its corporate name to Spectrum Brands from
Rayovac in 2005, moved into the newly built Rayovac Drive facility in
1985 as its new headquarters, adjacent to its existing battery
technology center constructed in 1965. In addition to serving as
Spectrum Brands’ world headquarters for all but six of those years since
1985, the Rayovac Drive complex has housed the North American Rayovac®
battery operations and, following its acquisition in 2003, the North
American Remington personal care operations.
“Since our origins, more than 100 years ago, as a battery manufacturer
on Madison’s east side, our Company has played a significant role as a
major employer in Dane County and other parts of Wisconsin,” said Mr.
Lumley. “We are pleased about our move to Middleton, as well as our
ability to retain our world headquarters and North American appliances
operations in Wisconsin and continue our long history of investment in
our state, which will include capital spending of $40 million over the
next five years.”
The developer for Spectrum Brands’ future world headquarters is Livesey
Company, a family-owned, commercial real estate development company
based in Madison.
Selection of the Discovery Springs site on Deming Way in Middleton
followed an exhaustive analysis of a number of existing facilities and
build-to-suit locations in the Madison and Middleton areas, the Company
said. The Middleton building will accommodate as many as 675 full-time
employees and include a new technology center to better foster
innovation in the highly competitive consumer products industry.
Spectrum Brands’ Rayovac battery division has been a leading supplier to
the U.S. armed services in specialized, critical and high-technology
battery device applications and continues to support the Army with
various R&D initiatives.
In addition to its world headquarters in Madison, Spectrum Brands
maintains Wisconsin battery manufacturing plants in Fennimore, with 320
employees, and Portage, with 200 employees, along with a small returns
center in DeForest.
About Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings, Inc., a member of the Russell 2000
Index, is a global and diversified consumer products company and a
leading supplier of batteries, shaving and grooming products, personal
care products, small household appliances, specialty pet supplies, lawn
& garden and home pest control products, personal insect repellents and
portable lighting. Helping to meet the needs of consumers worldwide, our
Company offers a broad portfolio of market-leading, well-known and
widely trusted brands including Rayovac®, Varta®, Remington®, George
Foreman®, Black & Decker®, Toastmaster®, Farberware®, Tetra®,
Marineland®, Nature’s Miracle®, Dingo®, 8-in-1®, FURminator®,
Littermaid®, Spectracide®, Cutter®, Repel®, Hot Shot® and Black Flag®.
Spectrum Brands Holdings' products are sold by the world's top 25
retailers and are available in more than one million stores in
approximately 130 countries. With nearly 6,000 employees in 43
countries, Spectrum Brands Holdings generated net sales of approximately
$3.2 billion in fiscal 2011. For more information, visit www.spectrumbrands.com.
Annual Wisconsin Economic Impact – Nearly $100 Million
Wisconsin Full-Time Employees – 1,000
Estimated Additional Full-Time Employees by 2014 – 100
Current Annual Wisconsin Payroll – Up to $80 million with new hires
Annual Wisconsin State Individual Income Withholdings – $4.5 million
Annual Premiums Paid to Wisconsin Health Care Insurers – $7 million
Annual Wisconsin Capital Spending – $8-10 million
Annual Wisconsin Property Taxes Paid – $660,000
Wisconsin Economic Development Corporation (WEDC) Award – $4 million
over 5 years, or $800,000 annually, with requirements that Spectrum
Brands maintain up to 470 existing full-time jobs in the Madison area
and make up to $40 million of capital investments in its Wisconsin
operations over the 5 years to meet the conditions of the award.
Source: Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings, Inc.