Just weeks after announcing its intent to sell its Global Batteries and Appliances segments, Spectrum Brands has taken its first step to shedding one of those businesses.
Spectrum has entered into a definitive agreement to sell its Global Battery and Lighting Business to Energizer Holdings for $2 billion in cash. Officials with Spectrum said the company expects to use the net cash proceeds to reduce debt, reinvest in its core businesses both organically and through bolt-on acquisitions and repurchase shares.
In announcing the deal with Energizer, Spectrum noted that the company is “actively marketing” its Appliance business, adding that it will not provide updates on its ongoing efforts.
Spectrum’s small appliance division includes an array of brands such as George Foreman, Black & Decker, Russell Hobbs, Juiceman and Remington. Company officials previously said they have received “multiple inquiries and offers” from prospective buyers and are in active discussions with several.
For the fiscal year ended September 30, 2017, the Global Batteries and Appliances segment generated net sales of $1.998 billion, with operating income of $231 million and adjusted EBITDA of $317 million. Spectrum Brands reported fiscal 2017 net sales of slightly more than $5 billion, with operating income of $561 million and adjusted EBITDA of $956 million.