Energizer to Acquire Playtex Products for $1.9 Billion
The acquisition puts Energizer in a position to compete more heavily in a market dominated by Procter & Gamble as Playtex is a leading manufacturer and marketer in the skin, feminine and infant care industries with sales that totaled $641 million for 12 months through March 2007. Aside from its Schick razors -- versus P&G's Gillette razors -- Playtex's namesake tampons are up against P&G's Tampax brand. Energizer batteries also compete against Duracell, which P&G acquired when it bought Gillette.
"Playtex has strong consumer brands, most of which have No. 1 or No. 2 market positions, in stable or growing personal care categories. Its products enjoy healthy margins with strong, predictable cash flows, similar to our existing stable of consumer and personal care products," says Ward M. Klein, chief executive officer of Energizer. "We see Playtex as an exceptionally great fit with Energizer, with similar customers and distribution channels in the