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Energizer Announces Acquisition Of Handstands For $340 Million

Energizer Announces Acquisition Of Handstands For $340 Million

Energizer Holdings Inc (NYSE: ENR) announced on Tuesday it has agreed to acquire HandStands Holding Corporation, a designer and marketer of automotive fragrance and appearance products, from Trivest Partners for $340 million in cash.

HandStands Holding recorded $128 million in sales, approximately 80 percent of which was recorded in the US. The company's products include brands such as Refresh Your Car!®, California Scents®, Driven®, Bahama & Co.®, LEXOL® and Eagle One®.

Energizer noted that the acquisition represents a "compelling strategic, operational and cultural fit" which is complementary to its already existing business. The acquiring company also shares with Energizer similar customers, distribution channels, category management characteristics and commitment to innovation.

"The acquisition allows us to leverage our global battery platform and integrated supply chain network, while providing top-line and free cash flow growth, which will further enhance our ability to drive long-term shareholder value," said Alan R. Hoskins, Chief Executive Officer of Energizer.

Energizer will use $250 million of its already existing cash on hand and finance the remainder of the acquisition through debt. Excluding one-time costs, Energizer expects the acquisition to be earnings accretive in the first full fiscal year following the close by $0.15 to $0.20 per share.

The deal is also expected to generate an incremental $20 million in cash flow and result in cost synergies of approximately $5 million.


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