Case Study: Spectrum Brands achieves a tax-efficient China exit with Tractus

Spectrum Brands exits China with Tractus through a tax-efficient sale of a 30,000 m² facility

Spectrum Brands Holdings faced a significant challenge when it decided to exit its costly manufacturing operations in China. The process of closing its wholly-owned battery facility in Ninghai proved to be far more complex than anticipated, particularly due to missing permits and the high valuation of its assets, making a straightforward sale difficult. The company enlisted Tractus Asia to develop a market exit strategy.

Tractus Asia implemented a solution by structuring the disposal as an offshore equity transaction. This approach allowed Spectrum Brands to sell both its corporate entity and real estate assets in a single, tax-efficient deal, avoiding a costly and time-consuming liquidation process. Tractus successfully navigated the complexities of the disposal, ultimately enabling Spectrum Brands to achieve a satisfactory exit from the Chinese market.

Spectrum Brands Holdings