© varta consumer Electronics Production | May 29, 2019
VARTA AG buys back its consumer batteries business
Battery manufacturer VARTA AG has signed an agreement to acquire the Europe-based VARTA Consumer Batteries business (VARTA Consumer) from US-based Energizer Holdings, Inc.
VARTA Consumer Batteries comprises a large number of country subsidiaries and its main production site in Dischingen, Germany. The product portfolio includes batteries, rechargeable batteries, chargers, portable power (power banks), and lights. The company has sales divisions in more than 20 countries. In the financial year 2019 the company expects revenues of around EUR 300 million. “With this transaction, we are seizing the unique opportunity to bring together what belongs together. The acquisition allows us to make extensive use of our premium brand name again, which also stands for technology and innovation leadership,” says Herbert Schein, CEO of VARTA AG, in a press release. In 2002, the original VARTA AG was divided into three business divisions, which were transferred to different buyers. The new owner of VARTA Consumer Batteries, Spectrum Brands, sold the company to Energizer Holdings at the beginning of 2019. “In addition, VARTA Consumer's attractive cash flow profile will make a significant contribution to the further expansion of our fast-growing, highly profitable lithium-ion production. Our growth strategy thus remains uncompromised; the pace of expansion for our lithium-ion production remains unchanged,” Schein adds. The purchase price for VARTA Consumer Batteries is estimated to be around EUR 100 million. The final purchase price is subject to the closing accounts. "We are very happy that we have succeeded in reuniting two companies that have a common history and share a common commitment to quality. With the takeover by VARTA AG, VARTA Consumer Batteries will receive a further boost to continue the extremely successful path of growth of the past years," says Peter Werner, Managing Director of VARTA Consumer Batteries EMEA. The closing of the transaction is subject to the approval of the European Commission and antitrust clearance. Closing is expected in the second half of 2019.