Freedonia Analyst Weighs in on Energizer's Acquisition of Spectrum Brand's Rayovac Brand

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Jan 16, 2018, 04:20 ET

CLEVELAND, Jan. 16, 2018 /PRNewswire/ -- On January 16, 2018, Energizer Holdings announced the acquisition of the battery and lighting assets of Spectrum Brands, including the Rayovac and Varta brand names, for $2 billion. The purchase will strengthen Energizer's position in both the primary and secondary battery markets and will expand its global production network, adding Rayovac's manufacturing locations in Brazil, Germany, Guatemala, the UK, and in the US to Energizer's existing facilities.

Freedonia Group analyst E. Reta Sober discusses the implications: "This deal strengthens and advances Energizer's product portfolio and competitive position in the US battery market, especially in single-use (primary) batteries. In 2017, Energizer was the second largest supplier of these batteries in the US, behind Duracell. The acquisition of Rayovac, the third largest supplier of single-use batteries, will move Energizer into the top spot in US primary battery sales".

Rayovac's leading market share, broad range of battery chemistries, and well-established brand name adds to its appeal. Rayovac manufactures and markets alkaline, primary lithium, silver oxide, zinc air, and zinc-carbon batteries for the consumer market under the Fusion, Implant Pro+, Pro Line, and Rayovac brand names.

Single-Use (Primary) Batteries in the US, a new study written by Sober, predicts 1.5% annual increases in US demand for single-use batteries through 2020.

More information regarding the study can be found here: https://www.freedoniagroup.com/industry-study/single-use-primary-batteries-in-the-us-3468.htm

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SOURCE The Freedonia Group