Spectrum Brands selling Rayovac battery business to competitor Energizer Holdings for $2B

Middleton-based Spectrum Brands Holdings announced Tuesday that it has entered into a definitive agreement to sell its Rayovac battery business to competitor Energizer Holdings for $2.0 billion in cash.

"Today's announcement is a culmination of our efforts to sell the Battery Business in order to refocus Spectrum Brands and enhance shareholder value," David Maura, Executive Chairman of Spectrum, said in a statement. "While we have a long and proud heritage in the Battery Business, this is a key part of our re-allocation of capital strategy towards a faster-growing and higher-margin Spectrum Brands."

Spectrum said in a news release that it expects to use the net cash proceeds to reduce debt, reinvest in its core businesses both organically and through bolt-on acquisitions, and repurchase shares.

Spectrum CEO Andreas Rouvé said the deal means the company is "making progress towards repositioning ourselves with an increased focus on our remaining businesses of Hardware & Home Improvement, Global Auto Care and Pet, Home & Garden. We are focusing our portfolio to strengthen our business and drive long-term growth and shareholder value.

Rouvé added that Spectrum is "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."

The transaction is expected to close prior to the end of 2018.

The Rayovac battery business that started in Madison more than 100 years ago was the legacy core of the global consumer products company that Spectrum Brands has become.

Spectrum had announced on Jan. 3 that it planned to sell its batteries and appliances businesses in 2018.

The company said at the time that it didn't know what impact a deal would have on jobs.

Spectrum Brands, with 18,000 employees worldwide, has 1,200 employees in Wisconsin: 670 at its Middleton headquarters, including 400 in the batteries and appliances division, and more than 500, in total, at two battery plants.

Sales of the division’s products — including batteries, shavers and George Foreman grills — are steady but slow, Spectrum Brands said.

The global batteries and appliances division brought in just under $2 billion for the 2017 fiscal year, or 40 percent of Spectrum Brands’ $5 billion revenue in fiscal 2017.

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