EnergizerHoldings Inc., known for its battery-powered pink bunny and Schick shavers, plans to separate its household products and personal-care units into two publicly traded companies.
The split will be a tax-free spinoff to shareholders and is expected to be completed in the second half of the 2015 fiscal year, St. Louis-basedEnergizersaid today in a statement. The stock jumped in early trading.
The split is the culmination of three years of measures aimed at improving shareholder value, including cutting expenses and initiating a dividend. In the past year through yesterday, the stock had gained just 2.2 percent, underperforming larger consumer companies like Procter & Gamble Co. and Kimberly-Clark Corp.
The household products division, which sells batteries and portable lighting products, reported annual revenue of about $1.9 billion in the trailing twelve month period ended March 31. The personal care unit, which has brands including Schick razors and Hawaiian Tropic sunscreen, had $2.6 billion in revenue over the same period.
The shares rose 8.5 percent to $105.98 at 7:41 a.m. in New York.
Revenue atEnergizerhas declined in each of the last four quarters. The company’s cost cutting in 2012 included plans to close factories in Missouri, Vermont and Malaysia.Energizeris splitting in two as rival Procter & Gamble also looks for ways to streamline operations and trim expenses to boost revenue. PG this month agreed to sell its most of its pet-food operations to Mars Inc.
After the separation is completed, current Chief Executive Officer Ward Klein is expected to serve as Executive Chairman of the Board of the personal-care business. David Hatfield, currently president and CEO ofEnergizerPersonal Care, is expected to lead as CEO of that unit. Alan Hoskins will serve as CEO of the household products division.