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ST. LOUIS — Energizer Holdings has announced an agreement to acquire the Stayfree pad, Carefree liner and o.b. tampon feminine hygiene brands in the United States, Canada and the Caribbean from McNeil PPC and Johnson & Johnson — members of the Johnson & Johnson Family of Consumer Cos. — for $185 million in cash.
Included in the sale are all brand assets, and the Johnson & Johnson manufacturing plant in Montreal. Energizer estimates that the acquisition will be modestly accretive in fiscal 2014. Closing is subject to customary conditions, including regulatory approval, and is expected to occur in the fourth quarter of 2013.
"We are very excited about the prospect of combining the Stayfree pad, Carefree liner and o.b. tampon feminine hygiene business with our Playtex Feminine Care business, strengthening both in the process," stated Ward Klein, CEO of Energizer Holdings. "Combining these complementary businesses gives us brands in each of the key feminine hygiene categories, and the opportunity to innovate by doing what we do best — simplifying and enhancing the lives of customers and consumers better than anyone else."
In other company news, Energizer Holdings posted a boost in third-quarter earnings as sales slipped 1.1%.
Net earnings for the quarter totaled $87.2 million, or $1.38 per diluted share, compared with net earnings of $70.2 million, or $1.06 per diluted share, in the year-ago period.
For the quarter, sales slipped 1.1% on a reported basis to $1.11 billion due to unfavorable currencies primarily in Asia and Latin America, the company stated. On an organic basis, net sales were essentially flat as higher volume in household products offset a modest decline in organic sales in personal care.