ST. LOUIS (AP) - Energizer Holdings plans to split into two separate and publicly traded companies, one selling batteries and other household items, the other selling personal care brands such as Schick razors and Edge shaving gel.
ST. LOUIS (AP) — Energizer Holdings plans to split into two separate and publicly traded companies, one selling batteries and other household items, the other selling personal care brands such as Schick razors and Edge shaving gel.
The St. Louis company said Wednesday that the split will give each company a clearer focus and let them make a more transparent case to investors.
The split will be structured as a tax-free spinoff to existing Energizer shareholders, the company said. Energizer did not say what names the companies would operate under.
The household company will sell Energizer and Eveready batteries, flashlights and portable lamps. It accounted for $1.9 billion in revenue in the year that ended March 31.
The personal care company's other brands will include Playtex and Stayfree feminine-care products and Hawaiian Tropic suntan lotion. It had $2.6 billion in revenue in the same period.
Energizer expects the split to take place in the second half of fiscal 2015, which ends in September 2015.
After the split, Energizer CEO Ward Klein is expected to serve as executive chairman of the personal care company. David Hatfield, current head of the personal care unit, will be CEO of the stand-alone company, Energizer said.
Current Energizer Chairman J. Patrick Mulcahy would be chairman of the stand-alone household products company and that unit's current chief, Alan Hoskins, would be CEO.
Shares of Energizer Holdings Inc. jumped nearly 8 percent, to $105.40, before the opening bell.