Playtex announces stockholder approval of Energizer merger
WESTPORT, Conn. Playtex Products announced on Thursday that stockholders have approved its merger agreement with Energizer Holdings, a maker of batteries and flashlights and the parent company of wet shave products manufacturer Schick-Wilkinson Sword. The deal is expected to close on or about Oct. 1.
Once the deal closes, Playtex will become a wholly owned subsidiary of Energizer and its common stock will no longer be listed on the New York Stock Exchange. The deal, valued at about $1.9 billion, will add feminine care, sun care and infant care products to Energizer’s portfolio. It is expected to be accretive to Energizer’s earnings per share in fiscal year 2008.
According to Energizer chief executive officer Ward Klein, the deal makes sense, as both companies have similar customers and distribution channels in the United States and Canada, and there’s an opportunity for geographic expansion.
“We also believe there are significant integration and cost reduction opportunities for the combined businesses. Energizer will emerge with a more diversified portfolio of products, and greater scale in the personal care category, which will now be evenly balanced with our household goods business. It will also provide a platform for possible additional value-adding acquisitions,” said Klein in a previously issued statement.