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Spectrum Cancels Sale Of Pet-Supply Unit

Maker of Remington shavers and other products will no longer sell its global pet-supply business because of problems getting consent from its senior lenders.

ATLANTA (AP) -- Spectrum Brands Inc., which makes Remington shavers and other products, said Monday it will no longer sell its global pet-supply business because of problems getting consent from its senior lenders.

In May, Spectrum said it planned to sell the business to appliance maker Salton Inc. for $692.5 million in cash.

"Despite our desire and diligent efforts to complete this transaction upon the negotiated terms, we have been unable to obtain the consent of our senior lenders necessary to close on a basis that would be in the best interests of our shareholders and the company," Chief Executive Kent Hussey said in a statement.

Hussey said the company planned to continue operating the business and predicted overall free cash flow between $40 million and $50 million in fiscal 2009.

The agreement will be terminated once the company pays $3 million to Salton to reimburse expenses.