Energizer Closes Buyout Of Spectrum Brands' GAC Business
Zacks Investment Research | Jan 28, 2019 09:11PM ET
Energizer Holdings, Inc. (NYSE:ENR) has successfully completed the buyout of Spectrum Brands’ (NYSE:SPB) Global Auto Care (“GAC”) business. As part of the deal, Energizer paid $937.8 million in cash and 5.3 million shares of common stock to Spectrum Brands.
The GAC business mainly includes appearance, performance and A/C recharge product categories. Spectrum Brands believes that Energizer’s skills and resources would further expand this business, and hence it aptly fits in Energizer’s existing auto care business portfolio.
Earlier this month, Energizer acquired Spectrum Brands’ Global Battery and Lighting Business for $2 billion in cash. The company is likely to gain on the addition of well-known battery brands like Rayovac and Varta to its portfolio. In particular, the Varta brand will enhance the company’s footprint in Latin America. Additionally, the takeover is likely to expand Energizer’s battery manufacturing footprint, which is expected to help the company ramp up supply.
Some other notable buyouts in the auto care space include HandStands and Reed-Union Corporation. These brands along with the company’s existing Lexol and Eagle One products are likely to aid Energizer in building its auto care business, both organically and through acquisitions.
Coming back to Energizer, this Zacks Rank #3 (Hold) stock has declined 20.7% in the past three months, against the Zacks Investment Research
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