Energizer Holdings plans to split into two separate and publicly traded companies, one selling batteries and household items, the other selling personal care brands such as Playtex and Stayfree feminine-care products.
The reason for the split is to give each company a clearer focus.
"Since becoming an independent company in 2000, Energizer has built two successful divisions and each is now well-suited to realize its full potential on a standalone basis," said CEO Ward Klein during a conference call.
The household products company, with batteries and portable lighting products, is anchored by the popular Energizer and Eveready brands. It reported revenue of $1.9 billion in the year ending March 31.
The new personal care company is expected to be a leading consumer products company with an attractive stable of well-established brand names, including Schick and Wilkinson Sword in wet shave; Edge and Skintimate in shave preparation; Playtex, Stayfree, Carefree and o.b. in feminine care; and Banana Boat and Hawaiian Tropic in sun care. The division had revenue of $2.6 billion in the same period.
"We expect that Household Products will be well-positioned to leverage its leading brands and product portfolio to generate significant cash flows," said Klein during the call. "And the Personal Care business has achieved scale to be able to enhance its focus on continuing innovation and to drive top-line and market share growth."
The company says its personal care products have strong positions in large and developed markets, holding number 1 or 2 positions in their categories.
Upon completion of the separation, Klein is expected to serve as executive chairman of the board of the personal care company. David Hatfield, currently president and CEO of Energizer Personal Care, is expected to serve as CEO of the new standalone personal care company.