By Lisa Kerner
Charlotte, N.C., July 13 - Energizer Holdings, Inc. entered into a definitive agreement to acquire Playtex Products, Inc. for $18.30 per share in deal valued at $1.9 billion, including debt.
The all-cash per share offer is a 26% premium over Playtex's closing stock price on July 10 and its average stock price for the past 90 trading days.
Both companies' boards of directors approved the transaction, which is slated to close in the fall of 2007. A $35 million termination fee is included in the agreement.
Energizer plans to finance the acquisition through cash as well as through existing and new committed credit facilities.
Playtex's sales for its most recently reported 12 months through March 2007 totaled $641 million, while Energizer's sales for its most recently reported 12 months totaled $3.255 billion.
Energizer was advised by Banc of America Securities and Bryan Cave LLP. Playtex was advised by Lehman Brothers, Inc. and Morgan Lewis & Bockius LLP.
"We see Playtex as an exceptionally great fit with Energizer, with similar customers and distribution channels in the United States and Canada, and the opportunity for geographic expansion in many other areas of the world where we currently do business," Energizer chief executive officer Ward M. Klein said in a company news release.
"We also believe there are significant integration and cost reduction opportunities for the combined businesses."
Westport, Conn.-based Playtex manufactures and markets products for the skin, feminine and infant care industries.
Energizer, located in St. Louis, manufactures batteries and flashlights and is the parent company of wet shave products manufacturer Schick-Wilkinson Sword.
| Acquirer: | Energizer Holdings, Inc.
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| Target: | Playtex Products, Inc.
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| Transaction total: | $1.9 billion
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| Price per share: | $18.30
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| Termination fee: | $35 million
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| Announcement date: | July 13
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| Expected closing: | Fall of 2007
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| Stock price for target: | NYSE: PYX; $89.60 on July 12
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