Energizer battery maker to split into two separate publicly traded companies
02 May 2014
Energizer Holdings Inc, a US manufacturer of batteries and personal care products, yesterday said that it plans to separate its batteries and household products and personal care brands into two separate publicly traded companies.
Energizer, based in Missouri, said that the separation is expected to create two strong independent public companies with distinct brands, categories and corporate strategies.
The tax-free spin-off is expected to be completed in the second half of the year through September 2015, the company said in a statement.
Household Products, with batteries, including Energizer and Eveready, and portable lighting products, reported annual revenue of approximately $1.9 billion in the twelve month period ended 31 March 2014.
Personal Care is expected to be a leading pure-play consumer products company with well-established brands, including Schick and Wilkinson Sword in Wet Shave; Edge and Skintimate in shave preparation; Playtex, Stayfree, Carefree and o.b. in Feminine Care; and Banana Boat and Hawaiian Tropic in Sun Care.
The Personal Care division had annual revenue of approximately $2.6 billion.
"The Energizer Board of Directors and management team have continually explored opportunities to improve performance and increase long-term shareholder value and believe that separating the Household Products and Personal Care divisions is the next logical step to unlock even greater value for Energizer shareholders," said Ward Klein, CEO of Energizer.
Energizer history goes back to 1896, when it was founded as the American Electrical Novelty & Manufacturing Company. The company has its foundation in the Eveready Battery Company, which was sold in 1986 to animal and human food manufacturer Ralston Purina, which spun off the company in 2000 and renamed it to Energizer Holdings.
Energizer, which invented the first portable light back in 1905, is one of the world's largest manufacturers of primary batteries and flashlights and is a global leader in portable power.
The company has grown through strategic acquisitions of brands like Schick and Wilkinson Sword from Pfizer, sunscreen and Hawaiian Tropic through the purchase of Playtex Products, Inc, and Banana Boat sunscreen products through the acquisition of Sun Pharmaceuticals Corp.
It also acquired Edge and Skintimate shaving gels from S.C. Johnson & Son, American Safety Razor in a bankruptcy court auction, and Stayfree, Carefree and ob brands from Johnson & Johnson.
