Ward Klein and David Hatfield to helm standalone Personal Care company
Energizer Holdings has announced plans to separate its 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 strong independent public companies with distinct brands, categories and corporate strategies.
Energizer's C&T portfolio encompasses wet shave brands Schick and Wilkinson Sword; shave preparation brands Edge and Skintimate; Banana Boat and Hawaiian Tropic in the sun care category; and several feminine hygiene brands. The division had annual revenue of approximately US$2.6bn in the 12 month period ended 31 March 2014.
Energizer says that creating two public companies will offer a number of benefits to the standalone businesses. Following the separation, each standalone company will be able to intensify focus on its distinct commercial priorities; allocate its own resources to meet the needs of its business; pursue distinct capital structures and capital allocation strategies; and provide a clear investment thesis and visibility to attract a long-term investor base suited to each business. The company expects Personal Care will create value by building on its track record of innovation in product development and marketing to drive top-line growth and win market share.
Upon completion of the separation, Ward Klein, currently CEO, is expected to serve as Executive Chairman of the board of standalone Personal Care, while David Hatfield, currently President and CEO of Energizer Personal Care, is expected to serve as CEO of standalone Personal Care.