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The management team aims to utilize the infusion of cash from these divestments to pay down debt, repurchase shares, and pursue acquisitions in more profitable segments. This transition follows a history of restructuring efforts, through which Spectrum Brands has exited from lesser-performing units.
Challenges and Growth Prospects
Despite positive long-term prospects, shares of Spectrum Brands have faced headwinds, exhibiting only 2% organic revenue growth in the last quarter. However, as the company pivots away from low-margin businesses, it expects its EBIT margin to rise significantly.