Segments Sponsored by
In addition to the announcement of its second fiscal quarter 2014 fiscal results, Energizer Holdings, Inc. announced its board has authorized management to pursue a plan to separate the company's household products and personal care divisions into two independent, publicly traded companies. The separation is planned as a tax-free spin-off to the company's shareholders and is expected to be completed in the second half of the 2015 fiscal year. The separation is expected to create two independent public companies with distinct brands, categories and corporate strategies:
"Over the last three years, we have taken a number of important steps to enhance shareholder value, including executing a multi-year cost reduction plan, improving working capital, and initiating a dividend," said Ward M. Klein, CEO. "The Energizer Board of Directors and management team have continually explored opportunities to improve performance and increase long-term shareholder value and believe that separating the Household Products and Personal Care divisions is the next logical step to unlock even greater value for Energizer shareholders. Importantly, as we move through the separation process, the company's working capital and cost reduction efforts will continue without interruption, and we expect to achieve the full savings projected."
Energizer believes that creating two public companies offers a number of benefits to the standalone businesses. Following the separation, each standalone company will be able to:
Upon completion of the separation, Ward Klein, currently Energizer Holdings’ CEO, is expected to serve as executive chairman of the board of standalone personal care. David Hatfield, currently president and CEO of Energizer personal care, is expected to serve as CEO of standalone personal care.