RAYOVAC TO ACQUIRE RAZOR MAKER REMINGTON

$332 Million Deal Keeps Rayovac in Step With Energizer, Duracell

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CINCINNATI (AdAge,com) -- Rayovac Corp. looks to become the second U.S.-based battery marketer in six months to buy a shaving brand as it moves to acquire Remington Products for $332 million in cash and debt assumption.

60 days
Rayovac, the No. 3 U.S. battery brand,

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expects its acquisition of Remington, maker of the No. 2 men's electric shaver brand, to close within 60 days. Energizer Holdings earlier this year acquired the Schick and Wilkinson Sword brands from Pfizer.

Both companies compete against Gillette Co., maker of Gillette razors, Braun shavers and Duracell batteries.

In a conference call today, Rayovac CEO David Jones said Remington compliments Rayovac, since they rely on many of the same retail channels. Both are value players in key segments, too.

Differing fortunes
But the companies' market performances have gone different directions of late. Rayovac has seen sales and shares decline in the U.S., though overall sales were up 60% last year thanks to acquisition of Germany's Varta brand. Rayovac slashed U.S. media spending 55% to $4 million last year, according to TNS Media Intelligence/CMR.

Remington has seen compound annual growth of 18% over the past five years in North America and last year increased ad spending 17.5% to $23.5 million, according to CMR. Remington is the overall U.S. market leader in electric shavers by volume and No. 2 in men's razors by volume and sales to Philips' Norelco.

Grey Global Group's Grey Worldwide, New York, handles Remington. Condon & Root Advertising, Chicago, handles Rayovac.

Mr. Jones wouldn't comment on plans for post-acquisition management of Remington, which now is headed by Procter & Gamble Co. and Clorox Co. veteran Neil DeFeo. But Mr. Jones said he planned no changes in Remington's marketing and new product plans set for this fall.

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