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Wired News - Battery Manufacturer Energizer Holdings Acquires Spectrum Brands' Global Battery and Lighting Business

LONDON, UK / ACCESSWIRE / January 18, 2018 / Active-Investors.com has just released a free research report on Energizer Holdings, Inc. (NYSE: ENR) ("ENR"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ENR as the Company's latest news hit the wire. On January 16, 2018, the Company announced that it has signed an agreement with Spectrum Brands Holdings Inc. (NYSE: SPB) to acquire its Global Battery and Lighting Business (Spectrum Batteries). The all-cash deal is valued approximately $2 billion. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Energizer Holdings and Spectrum Brands Holdings most recent news are on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Management Comments

Commenting on the acquisition of Spectrum Batteries, Alan R. Hoskins, CEO of Energizer, said, "The acquisition of Spectrum Batteries represents a compelling strategic, operational, and financial fit for 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...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."

Andreas Rouvé, CEO of Spectrum Brands Holdings, added, "Our Global Battery Business is a true reflection of Spectrum Brands' strengths - a portfolio of well-known and widely trusted brands driven by a culture of innovation and by passionate people to generate consistent results. We are pleased to be selling to owners who can deliver the necessary resources and market expertise, and provide strong support for our people and the business' future growth plans."

Details of the Transaction

Spectrum Batteries business includes popular battery brands like Varta® and Rayovac® and a diversified portfolio of products including alkaline, carbon zinc, hearing aid, and nickel metal hydride rechargeable batteries as well as battery chargers and portable lighting products. The acquisition will allow ENR to expand its global footprint; expand its product offerings and manufacturing capabilities; and enhance its R&D capabilities.

The all-cash transaction of $2 billion is being financed by ENR using a mix of cash on hand and fresh debt including a term loan and issue of senior notes. The Company plans to continue to maintain its existing senior notes, maturing in 2025. The transaction is expected to be completed in Q4 2018 and is subject to receiving requisite regulatory approvals and other closing conditions.

Benefits of the Acquisition

The acquisition is expected to be marginally accretive to ENR's adjusted earnings per share (EPS) and free cash flow in the first year and be increasing accretive later once the targeted synergies are realized. The deal is expected to result in a one-time transaction and integration costs. The deal will also provide ENR with tax benefits and run-rate synergies of $80 million to $100 million. Spectrum Batteries reported revenues of $866 million and earnings before interest, tax, depreciation, and amortization (EBITDA) of $169 million in FY17. The transaction price for Spectrum Batteries represents 7.5 times the EBITDA of FY17 after taxes.

The acquisition will allow ENR to benefit from cost efficiencies and give it a massive competitive advantage in this market segment.

Spectrum Brands had been exploring strategic options for its Global Batteries & Appliances (GBA) businesses since early January 2018. With the divestment of its global Batteries' business, it is now in the process of identifying a suitable buyer for its Appliances business. The Company is streamlining its businesses to focus on faster-growing and higher-margin businesses of Hardware & Home Improvement, Global Auto Care, and Pet, Home & Garden. The Company plans to use the funds raised from this sale towards reducing its debts and reinvesting capital to strengthening its core businesses via strategic acquisitions and share buybacks.

About Energizer Holdings Inc.

St. Louis, Missouri-based Energizer Holdings is a global leader in the dynamic business of providing power solutions Its portfolio of products includes Energizer® brand battery products such as Energizer® EcoAdvanced™, Energizer MAX®, Energizer® Ultimate Lithium™, Energizer Recharge® batteries and charging systems, portable flashlights, and lanterns. The Company expanded its product portfolio to include automotive fragrance and appearance products via brands like Refresh Your Car!®, California Scents®, Driven®, Bahama & Co.®, LEXOL® and Eagle One®.

Energizer Holdings' operations are spread across 40 locations and distribution network covers over 140 countries.

About Spectrum Brands Holdings Inc.

Middleton, Wisconsin-based Spectrum Brands is a global consumer products Company. It is a leading supplier of consumer batteries, residential locksets, residential builders' hardware, plumbing, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn and garden and home pest control products, personal insect repellents, and auto care products. Some of the Company's leading global brands include Rayovac®, VARTA®, Kwikset®, Weiser®, Baldwin®, National Hardware®, Pfister®, Remington®, George Foreman®, Black + Decker®, Tetra®, Marineland®, Nature's Miracle®, Dingo®, 8-in-1®, FURminator®, IAMS® and Eukanuba® (Europe only), Healthy-Hide®, Digest-eeze™, Littermaid®, Spectracide®, Cutter®, Repel®, Hot Shot®, Black Flag®, Liquid Fence®, Armor All®, STP® and A/C PRO®.

Spectrum Brands' products are sold in over 160 countries. For fiscal 2017, the Company reported net sales of approximately $5.01 billion.

Stock Performance Snapshot

January 17, 2018 - At Wednesday's closing bell, Energizer Holdings' stock dropped 3.47%, ending the trading session at $57.06.

Volume traded for the day: 2.47 million shares, which was above the 3-month average volume of 825.13 thousand shares.

Stock performance in the last month - up 20.05%; previous three-month period - up 19.15%; past twelve-month period - up 17.46%; and year-to-date - up 18.92%.

After yesterday's close, Energizer Holdings' market cap was at $3.38 billion.

Price to Earnings (P/E) ratio was at 17.76.

The stock has a dividend yield of 2.03%.

The stock is part of the Consumer Goods sector, categorized under the Personal Products industry. This sector was up 1.0% at the end of the session.

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