Energizer announces acquisition of Rayovac
Energizer is buying out the competition — quite literally. The St. Louis-based company has announced that it has entered a definitive agreement to acquire Spectrum Brands Global Battery and Portable Lighting Business, which includes the brands Varta and Rayovac, for $2 billion in cash.
Spectrum's generated 2017 revenue and EBITDA was $866 million and $169 million, respectively. Energizer intends to fund the acquisition through a combination of existing cash and committed debt facilities, including term loans and senior notes.
"The acquisition of Spectrum Batteries represents a compelling strategic, operational, and financial fit for Energizer," Alan R. Hoskins, chief executive officer at Energizer, said. "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 transaction is subject to customary closing conditions, including regulatory approvals and is expected to close prior to the end of calendar 2018.
Spectrum's generated 2017 revenue and EBITDA was $866 million and $169 million, respectively. Energizer intends to fund the acquisition through a combination of existing cash and committed debt facilities, including term loans and senior notes.
"The acquisition of Spectrum Batteries represents a compelling strategic, operational, and financial fit for Energizer," Alan R. Hoskins, chief executive officer at Energizer, said. "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 transaction is subject to customary closing conditions, including regulatory approvals and is expected to close prior to the end of calendar 2018.