MIDDLETON, Wis. - Spectrum Brands announced Tuesday it has entered into an agreement to sell its Rayovac battery and lighting business to Energizer.
The companies have agreed on a sale price of $2 billion in cash, with Spectrum Brands planning to reduce debt, reinvest in its core businesses and repurchase shares, officials said.
“Today’s announcement is a culmination of our efforts to sell the Battery Business in order to refocus Spectrum Brands and enhance shareholder value. 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,” David Maura, executive chairman of Spectrum Brands Holdings, said in a release.
Spectrum Brands announced it was looking for a buyer for its battery business earlier this month.
The consumer products company, which makes Rayovac and Kwikset, wants to concentrate on its four remaining businesses, which are hardware and home improvement, global auto care, global pet supplies and home and garden.
The transaction is expected to close before the end of 2018, officials said.