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 Global 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, Spectrum Brands' GM, Amanda Carr, says in a letter to retailers today: "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."
"While the transaction goes through the regulatory approval process through 2018, our relationship goes unchanged.
"We will continue to support you as our valued customer with strong focus on growing the category, bringing you insights regarding consumer behavior, and continuing to drive innovation.
"Until the close, all our operations continue unchanged, so the products and services you are accustomed to getting from us will continue uninterrupted.
"We are excited for our future as we approach this new chapter and look forward to maximizing the opportunities to provide you with an even greater level of service and innovation in the future.
"As always I am here to answer any questions you have about our products and to ensure you get the service you expect from Varta.
"We will continue to keep you up to date as the integration of the Varta business into Energizer proceeds.
"I am looking forward to entering this exciting new phase for our Battery business with even more compelling products and expanded services."