Boston, MA 05/06/2014 (wallstreetpr) – Energizer Holdings, Inc. (NYSE:ENR) recently announced plans to split its business into two separate traded public companies in what can be seen as efforts to enhance shareholder value. Therefore, the planned spinoff will establish the personal-care business as a publicly traded company and the household-products as another publicly traded company.
The spinoff of the Energizer Holdings units mirrors the growing practice among the consumer giants. The past years saw consumer giants such as Sara Lee Corp and Kraft Foods Inc separate their units into standalone companies to achieve efficiency and improve value for shareholders.
As for Energizer, the spinoff is seen more as a continuation of transformations in the company that saw the company undertake more aggressive cost-cutting measures while initiating dividend to improve shareholder value.
According to analysts, it is likely that the spinoff of the units of Energizer might see growing acquisition interests from other industry players or private equity firms. The personal care business is seen as best fit and potential acquisition candidate for industry players in Asia or Europe that do not already have the categories but are keen on taking on industry leaders such as Procter & Gamble Company (NYSE:PG).
The battery unit might appeal to private equity firms that seek to leverage on the buyouts as the unit looks strong even in the face of mounting competition.
Management structure
Energizer Holdings, Inc. (NYSE:ENR) expects to complete the spinoffs in the second half of next year. The management structure of the resulting companies has also been issued. Following the spinoff, current CEO Ward Klein will assume the role of executive chairman of the newly spun off personal care products. The current head of the Energizer Personal Care David Hatfield will become the CEO of the new company. On the other hand, the household products unit will have the current head of the segment Alan Hoskins as its CEO.
Latest quarter
Revenue decline at Energizer Holdings, Inc. (NYSE:ENR) seems to have no end in sight as Q22014 also revealed a 3 percent fall in revenue. Therefore, revenue in the quarter came in at $1.06 billion against $1.1 billion in Q22013.
