Energizer set to acquire Johnson & Johnson feminine care brands
Energizer Holdings Inc. announced its plan to purchase Johnson & Johnson's feminine care brands in Canada, the United States and the Caribbean, following the loss of two battery accounts. The tentative proposal for the deal was to be priced around US$185 million.
The company reported a higher profit than expected despite 4.2% drop in latest trading report and shared its plan to jump the next quarter's dividend by 25%. Energizer, though best known for its batteries, garnered a bigger percentage of profits and sales from its line of personal care products such as Playtex tampons, Banana Boat and Schick razors.
Energizer said it expected the deal to be finalized by this quarter and the integration of the feminine brands in the company's portfolio to increase next year's earnings. The company acquired the services of Goldman Sachs as the financial advisor for the deal.
The acquisition of Johnson & Johnson's units will be the key in helping Energizer gain traction in the feminine care industry which is currently dominated by Proctor & Gamble's Always and Tampax brands and Kimberly-Clark Corp.'s Kotex.