Following on from the news last week that Spectrum Brands was looking to sell its global batteries and SDA businesses, it has just been announced that the batteries business (i.e. the Rayovac and Varta brands) will be sold to Energizer, subject to regulatory approval.
The sale is worth a cool US$2 billion, according to Energizer Holding's website, and "represents a compelling strategic, operational, and financial fit", according to Alan R Hoskins, Energizer's CEO.
Last FY, by the way, Spectrum Batteries globally generated an EBITDA of US$169 million from revenue of US$866 million.
Energizer's CEO says: "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.
For New Zealand and the Varta brand, Spectrum Brands' GM, Amanda Carr, said in a letter to retailers yesterday: "We believe the combination of Rayovac, Varta, and Energizer will be tremendously powerful - providing you with a broader portfolio of brands, greater consumer marketing support, and an enhanced global infrastructure to support you."