ST. LOUIS (KMOX) – St. Louis-based Energizer Holdings is growing substantially. Early Tuesday morning, a deal announcing its acquisition of competitor Rayovac for $2 billion shook the global battery landscape.
Energizer Holdings is purchasing Rayovac batteries and other battery and lighting products from Spectrum Brands, which recently said it was looking to sell its global battery business. The deal now leaves two dominant players in the battery industry worldwide – Energizer and Duracell.
“The acquisition of Spectrum Batteries represents a compelling strategic, operational, and financial fit for Energizer,” said Alan Hoskins, CEO of Energizer. “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. 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.”
The deal between Energizer Holdings and Spectrum Brands is expected to close by the end of the year.