Bank of America is leading the debt financing backing United Industries Corp.'s $360 million acquisition of United Pet Group (UPG). The deal will also be financed with equity from Thomas H. Lee Partners, United Industries' principal shareholder. One analyst believes the acquisition will be financed primarily with equity and bank debt because T.H. Lee may soon sell the company or exit through an initial public offering and a bond deal would make the sale more expensive to prospective buyers.
United Industries was last in the market in March with a $510 million facility that backed the company's $143.8 million acquisition of The Nu-Gro Corp. That loan was led by B of A and Citibank. UPG is currently owned by TA Associates, Friend Skoler & Co. and management. UPG markets and manufactures pet supplies. United Industries, which goes to market as Spectrum Brands, manufactures lawn and garden care products. Dan Johnston, United Industries' cfo, and a T.H. Lee spokeswoman did not return calls. Tom Kasvin, UPG's cfo, was out of the office and could not be reached for comment.