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Energizer to buy Spectrum Brands’ battery business for $2B

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ST. LOUIS and MIDDLETON, Wis. — Energizer Holdings Inc. plans to acquire the global battery and portable lighting business of Spectrum Brands Holdings Inc. for $2 billion in cash.

The deal, announced Tuesday, will add the Rayovac and Varta battery brands — whose products include alkaline, carbon zinc, hearing aid and nickel metal hydride rechargeable batteries as well as battery chargers and portable lighting products — to Energizer Holdings’ Energizer and Eveready battery and portable lighting products portfolio.

Rayovac batteries_Spectrum Brands_Energizer Holdings

Spectrum Batteries generated 2017 sales of $866 million, Energizer reported. The company said that, besides broadening its product lineup, the acquisition will expand its presence in international markets, boosts its manufacturing capabilities, and increase capacity for research and development, in turn enabling consumers to benefit from accelerated innovation and a wider range of products.

“The acquisition of Spectrum Batteries represents a compelling strategic, operational and financial fit for Energizer,” Alan Hoskins, chief executive officer of Energizer Holdings, said in a statement. “The combination will enable us to leverage Spectrum Brands’ manufacturing assets, significantly expand our international business and enhance our long-term brand-building capabilities as we broaden our portfolio with the Varta and Rayovac brands and our geographies with Spectrum Batteries’ passionate global colleagues.

“We have great respect for Spectrum Batteries and the strong business its colleagues have built, and are excited to bring together the talented colleagues from around the globe from both organizations to drive our business to new heights,” Hoskins added. “In addition, the top-line and free cash flow growth from this acquisition, combined with the opportunity to realize meaningful synergies, will further enhance our ability to drive long-term shareholder value.”

Spectrum had announced earlier this month that it was exploring strategic alternatives for its global batteries and appliances businesses. The company said it continues to market its appliances business.

With the sale of the battery and lighting unit, Spectrum said it expects to use the proceeds to reduce debt, reinvest in its core businesses — both organically and through “bolt-on acquisitions” — and repurchase shares.

“Through this transaction, we are making progress towards repositioning ourselves with an increased focus on our remaining businesses of hardware and home improvement, global auto care and pet, and home and garden. We are focusing our portfolio to strengthen our business and drive long-term growth and shareholder value,” stated Andreas Rouvé, CEO of Spectrum Brands Holdings. “Our blobal battery business is a true reflection of Spectrum Brands’ strengths — a portfolio of well-known and widely trusted brands driven by a culture of innovation and by passionate people to generate consistent results. We are pleased to be selling to owners who can deliver the necessary resources and market expertise and provide strong support for our people and the business’ future growth plans.”

Energizer and Spectrum said the transaction is expected to close before the end of calendar 2018, pending regulatory approvals and other customary closing conditions.

“Today’s announcement is a culmination of our efforts to sell the battery business in order to refocus Spectrum Brands and enhance shareholder value,” commented David Maura, executive chairman of Spectrum Brands Holdings. “While we have a long and proud heritage in the battery business, this is a key part of our reallocation of capital strategy towards a faster-growing and higher-margin Spectrum Brands.”


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