MIDDLETON, WISCONSIN — According to recent media reports, Spectrum Brands Holding Inc is exploring strategic options, including the possible sale of its appliance and battery divisions. The company, which owns Rayovac batteries, is already in talks several with prospective buyers.
According to a report in USA Today, the company is looking to concentrate on its four remaining businesses: hardware and home improvement, global auto care, global pet supplies and home and garden equipment.
“We have received multiple inquiries from prospective buyers and are in active discussions with several. Given their attractiveness and upside potential, we believe these businesses can have accelerated success in the hands of new owners.” –Andreas Rouvé, CEO
Spectrum believes selling off the divisions will allow them to reduce debt and focus on its high margin businesses.
Largest Hearing Aid Battery Supplier: Up for Sale?
While Rayovac makes many different kinds of batteries, it is well established as a top brand in the hearing aid industry. The company currently holds 60 percent of the worldwide market share in hearing aid batteries.
It’s still uncertain who may purchase Rayovac, but some industry analysts believe Energizer (ENR) may be the likely buyer.
“…ENR is the most logical strategic buyer for Spectrum Brands’ battery business, and we believe anti-trust issues could be overcome given easily accessible battery capacity in Asia.” –Analyst Faiza Alwy, Duetsche Bank analyst in comments to StreetInsider
Source: Reuters, USA Today, Spectrum