Energizer Holdings Inc has announced its plans to split into two separate companies as it looks to rationalize its business.
The move would see the company split into two new businesses – one focused on personal care and one on household products companies – and is scheduled for the second half of 2015. The decision comes as the disposable battery market is faced with increasing pressures as consumers move towards rechargeable products: Energizer’s household products business contributed just 45% last year to the overall business, down from 70% in 2006.
Under the proposed split, the personal care company would include the holding’s health & beauty brands such as Schick razors and Stayfree female hygiene products. Energerizer expects the personal care business, which also makes Wilkinson Sword shavers and Banana Boat sunscreen, to be a consumer product company aimed at growing through scale and innovation.
Meanwhile the household products company would include Energizer’s flagship batteries and other products.
The company expects the move will help the businesses intensify focus on commercial priorities and better allocate resources. However, according to some analysts, the new personal care company could also be a takeover candidate.
Alan Hoskins, the CEO of Energizer Household Products, will continue to lead the business post-split.