ENERGIZER TO BUY SCHICK FOR $930 MILLION FROM PFIZER

Opens War on Two Fronts With Rival Gillette

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CINCINNATI (AdAge.com) -- Energizer Holdings on Monday said it intends to buy Pfizer's Schick-Wilkinson Sword brands for $930 million, further pitting the company against Gillette Co., already a rival in batteries.

An Energizer spokeswoman could not immediately be reached today regarding agency assignments, but Energizer CEO Pat Mulcahy said in a conference call today he plans to leave senior management of Schick in place and have the unit operate independently.

Schick's ad agency is WPP Group's J. Walter Thompson, New York, while Energizer's battery brands are handled by Omnicom Group's TBWA/Chiat/Day, Playa Del Rey, Calif.

Market dominance
Unlike the batteries category,

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where Energizer has only a single-digit market share gap with Gillette's Duracell, Gillette, with a roughly 70% global market share in razors and blades, has more than a 40 point lead on Schick. But Mr. Mulcahy said he sees room for Schick to build sales and enhance global distribution.

Schick markets Xtreme III razors and Silk Effects. And under the Wilkinson Sword brand, it manufactures ceremonial swords.

The deal has been approved by Energizer's board but still needs regulatory approval before it closes.

Pfizer had been looking to sell the non-core businesses it had acquired in its merger with Warner-Lambert Co. Pfizer in December sold its confectionary division, Adams, for $4.2 billion in cash to Cadbury Schweppes.

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