Following its prior announcement of plans to exit the Duracell business, P&G said it now plans to execute a split transaction, in which it will exchange a recapitalized Duracell Company for Berkshire Hathaway’s shares of P&G stock. “We thank the Duracell employees for their many contributions to the business. They’ve made Duracell the global market leader in the battery category,” said P&G chairman of the board, president and CEO A.G. Lafley at P&G's 2014 analyst meeting. “I’m confident this new ownership structure will provide strong support for Duracell’s future growth plans.”
Berkshire’s stock ownership is currently valued at approximately $4.7 billion. P&G said it expects to contribute approximately $1.8 billion in cash to the Duracell Company in the pre-transaction recapitalization.
Based on the signing of the contract to exit the Duracell business, P&G will restate Batteries results to discontinued operations effective with the reporting of October-December 2014 quarterly results. The Company expects to restate earnings per share of approximately $0.12 to $0.14 to discontinued operations for fiscal year 2014. All-in GAAP earnings per share are not affected by the restatements.
P&G said it expects to close the Duracell transaction in the second half of calendar year 2015, pending necessary regulatory approvals.