Energizer to buy Playtex for $1.9B
Consumer products giants Energizer Holdings Inc. will acquire Playtex Products Inc. for $18.30 per share in cash plus the assumption of Playtex debt, in a transaction estimated to be worth $1.9 billion.
The all-cash offer per share represents a 26 percent premium over Playtex's closing stock price July 10 and its average stock price for the past 90 trading days. The transaction was approved unanimously by the boards of directors of both companies. Energizer will finance this acquisition through cash and existing and new committed credit facilities.
"We are most interested in strong brands that are either No. 1 or No. 2 in their category in which Playtex is," said Neil DeFeo, chairman/CEO of Playtex, in a press call. "We are very excited about bringing the world-class businesses and people of Playtex into the Energizer family. It fits strategically."
Playtex, a leading manufacturer and marketer in the skin, feminine and infant-care industries, recently acquired Hawaiian Tropic. Energizer is a leading manufacturer of primary batteries and flashlights and the parent company of Schick-Wilkinson Sword, the second largest manufacturer of wet-shave.
Playtex's sales for its most recently reported 12 months through March 2007 totaled $641 million, and earnings before interest, taxes, depreciation and amortization were $126 million. Actual GAAP earnings for that period were $34 million. These numbers do not include Playtex's recent acquisition of Hawaiian Tropic, which had 2006 sales of about $112 million. Over 93 percent of the company's sales, including Hawaiian Tropic, are in North America.
Energizer's sales for its most recently reported 12 months totaled $3,255 million, and earnings before interest, taxes, depreciation and amortization were $607 million. Actual GAAP earnings for that period were $279 million.
The transaction is subject to customary closing conditions, including governmental and regulatory approvals as well as approval of the shareholders of Playtex. This transaction is expected to close in the fall.