Rayovac to obtain $675 million credit facility to fund Varta acquisition

By Sara Rosenberg

New York, July 29 - Rayovac Corp. expects to obtain a $675 million credit facility to help fund the acquisition of Varta AG's consumer battery business. Bank of America and Citigroup will lead the bank deal.

Besides funding the acquisition, proceeds from the credit facility will also be used to retire existing bank debt and provide for expanded working capital needs of the larger company.

"This transaction is the most significant milestone in the history of Rayovac," said Dave Jones, chairman and chief executive officer, in a company press release. "Varta's consumer battery brands are highly regarded in Europe and Latin America. Their battery technology and manufacturing/distribution infrastructure are state-of-the-art. Without question, combining Varta's consumer battery business with Rayovac's existing businesses will create a much stronger global competitor, selling in more than 100 countries worldwide."

The transaction is expected to close in the fall and is valued at €262 million. Closing is subject to obtaining the necessary financing, approval of Varta's shareholders and other customary conditions.

Rayovac is a Madison, Wis. battery and lighting device company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.