Middleton-based Spectrum Brands Holdings Inc.
has completed the sale of its Global Battery and Lighting business, which includes Rayovac batteries, to St. Louis-based Energizer Holdings Inc.
for $2 billion in cash.
[caption id="attachment_370148" align="alignright" width="300"]
Spectrum Brands makes Rayovac batteries.[/caption]
The pending deal was announced almost a year ago
, and the companies have been gaining regulatory approvals ever since. The Global Battery and Lighting business also includes the Varta brand. It makes alkaline, carbon zinc, hearing aid and nickel metal hydride rechargeable batteries, battery chargers, and portable lighting products.
Spectrum has about 700 Global Battery and Lighting employees in Wisconsin, about 200 of whom work at the Middleton headquarters. An Energizer spokeswoman said the company hasn't yet finalized its future plans for the unit's operations or employment.
Energizer is also in the process of acquiring Spectrum’s auto care business for about $1.25 billion in cash and equity. On Dec. 21, the companies announced they had received all their antitrust approvals for that transaction, which they expect to close on in February.
Spectrum is a global consumer products company that includes brands such as Remington, George Foreman, Black+Decker, Nature’s Miracle, Repel, Armor All and others. It reported $3.8 billion in revenue in 2018 for the businesses it is retaining: Hardware & Home Improvement, Appliances, Global Pet Supplies, and Home & Garden. Spectrum Batteries’ 2017 revenue was $866 million. It has 14,500 total employees worldwide, about 1,170 of whom are based in Wisconsin.
Energizer Holdings makes Energizer, EcoAdvanced, Energizer MAX, Energizer Lithium, Energizer Recharge batteries and charging systems, portable flashlights, lanterns, and automotive fragrance and appearance products. The company reported 2018 revenue of $1.8 billion.
According to Statista
, as of 2016, Duracell Coppertop was the leading battery brand in the U.S., with about 40 percent of the market share. Energizer Max had about 26.4 percent of market share and Rayovac had 9.2 percent.
“We extend our thanks to both the Spectrum Brands and Energizer teams for working nearly a year to bring this global transaction to a successful completion,” said David Maura, executive chairman and chief executive officer of Spectrum Brands Holdings. “We can now embark on our debt reduction initiatives to materially improve our capital structure in fiscal 2019 as we focus on our four continuing businesses with increased investments in innovation and brand support.”