After years of buying up brands, Energizer Holdings has decided not to keep on going as a single consumer products conglomerate.
The company said on Wednesday that it plans to divide itself into two publicly traded concerns. One would contain its household products like Energizer and Eveready; the other would house personal care offerings like Schick razors and Hawaiian Tropic sunscreen.
The move reflects the latest effort by conglomerates to improve their shareholder value by splitting themselves apart, creating smaller and more focused companies.
It’s also the latest evolution of Energizer, which became an independent company when it was spun off from Ralston Purina 14 years ago.
“Since becoming an independent company in 2000, Energizer has built two successful divisions and each is now well-suited to realize its full potential on a standalone basis,†Ward M. Klein, Energizer’s chief executive, said in a statement. “We expect that Household Products will be well-positioned to leverage its leading brands and product portfolio to generate significant cash flows and the Personal Care business has achieved scale to be able to enhance its focus on continuing innovation and to drive top-line and market share growth.â€
After the separation, Mr. Klein will become the chairman of the personal care company, while David Hatfield, the unit’s chief executive, will continue in that position.
J. Patrick Mulcahy, Energizer’s chairman, will play that role for the household products company, while Alan Hoskins, the division’s chief executive, will become chief executive of the standalone business.
Separately, the company said that its earnings for the quarter that ended on March 31 rose 16 percent, to $98.5 million. Net sales fell 3 percent to $1.06 million, which the company attributed to lower sales of household products and a shift in delivery of sun care products because of the timing of Easter.
Energizer is receiving advice from Goldman Sachs and the law firms Wachtell, Lipton, Rosen & Katz and Bryan Cave.
