ST. LOUIS (AP) — Energizer Holdings plans to split into two separate and publicly traded companies, one selling batteries and household items, the other selling personal care brands such as Schick razors and Edge shaving gel.
Shares jumped 16 percent in midday trading Wednesday to reach a six-year high.
The St. Louis company believes the split will give each company a clearer focus and let them make a more transparent case to investors.
Reusable batteries have cut into traditional battery sales in recent years, thought the company does have its own line of rechargeable batteries.
The split will be structured as a tax-free spinoff to existing Energizer shareholders, the company said. Energizer did not say what names the companies would operate under.
The household company will sell Energizer and Eveready batteries, flashlights and portable lamps. It accounted for $1.9 billion in revenue in the year that ended March 31.
The personal care company's other brands will include Playtex and Stayfree feminine-care products and Hawaiian Tropic suntan lotion. It had $2.6 billion in revenue in the same period.
"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 stand-alone basis," said CEO Ward Klein.
Energizer expects the split to take place in the second half of fiscal 2015, which ends in September 2015.
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