Rayovac's chairman and chief executive, David A. Rayovac has annual revenue of $1.5 billion it posted a profit of $55.8 million, or $1.61 a share, for its 2004 fiscal year, O'Donnell said. United Industries estimated its annual revenue is about $950 million it did not say how much it earned in 2004. Asked if there would be job cuts, Nancy O'Donnell, vice president of investor relations, said "down the road, possibly." But, she said, there are no current plans to reduce the overall work force. The two companies would have a combined 9,300 employees and revenue of roughly $2.45 billion, officials said. United Industries is based in Maryland Heights, Mo., a suburb of St. At Monday's closing price, those Rayovac shares were worth $406 million, but the value shot up Tuesday to $476 million after news of the deal.Īs part of the deal, Rayovac would assume about $880 million of United Industries debt and a cash tax benefit of $140 million. Under terms of the deal, Rayovac would issue 13.75 million shares of its common stock and pay $70 million in cash for United Industries shares, which are not publicly traded. "The combination of United Industries and Rayovac now balances the seasonal characteristics of this company in a decidedly more even fashion," he said. Also, the combination will benefit Rayovac because United Industries' niche, lawn care products, usually has strong sales during the first six months of the year, while Rayovac's battery sales are usually strong during the second half of the year, Barry said. If the deal closes as expected in February, battery-related sales will only account for about 40 percent of Rayovac's overall revenue, compared to 65 percent to 70 percent as a standalone company, Barry said. "I think what the market is telling us is if this transaction is finalized, this is in fact a transforming event for Rayovac," Barry said. Shares of Rayovac soared $5.09, or 17.2 percent, to close at $34.65 in trading Tuesday on the New York Stock Exchange, its highest closing price since it went public in November 1997. The deal also would lessen Rayovac's reliance on battery sales to account for the majority of its revenue, said Peter Barry, an analyst with Bear, Stearns & Co. battery market, to broaden the company's array of household products, which currently includes Remington shavers, and enable it to get more out of its operational expertise and existing relationships with retailers.Īmong United Industries' brands are Vigoro lawn care products, Cutter insect repellent and Eight in One pet supplies. The deal will allow Atlanta-based Rayovac, third behind Gillette Co.'s Duracell and Energizer Holdings Inc.'s Energizer in the U.S. ![]() Rayovac shares rose more than 17 percent to a record high. ATLANTA - Battery maker Rayovac Corp.'s announcement that it will purchase privately held United Industries Corp., maker of lawn care and pet supply products, for about $546 million in stock and cash was cheered Tuesday by Wall Street as an opportunity by Rayovac to transform itself into a more diversified company.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |