Energizer Holdings is planning to separate its household products and personal care divisions into two independent, publicly traded companies.
The tax-free spin-off is expected to be completed by the second half of the 2015 fiscal year and is designed to create two independent public companies with distinct brands, categories and corporate strategies.
The household products company will focus on batteries and portable lighting offerings and will be anchored by the Energizer and Eveready brands. Beanstalk represents many of these brands for licensing.
The personal care company will be a pure-play consumer products company with a stable of well-known brands 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, many of which are represented by Brandgenuity.
Once separated each company will be able to intensify focus on its distinct commercial priorities, allocate resources as demanded by business needs, pursue distinct capital structures and attract a long-term investor base suited to each business.
"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," says Ward M. Klein, chief executive officer, Energizer Holdings. "We expect that the household products division will be well-positioned to leverage its leading brands and product portfolio to generate significant cash flows, 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."
Once the spin-off is complete, Klein will serve as executive chairman of the board of the personal care company. David Hatfield, currently president and chief executive officer of Energizer Personal Care, will serve as chief executive officer of the standalone personal care company.
J. Patrick Mulcahy, currently chairman of the board of Energizer Holdings, is expected to serve as executive chairman of the board of the household products company. Alan Hoskins, currently president and chief executive officer, Energizer Household Products, will serve as chief executive officer of the new standalone household products company.