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Energizer Gets in Touch With Its Feminine Side

http://www.fool.com/investing/general/2013/08/01/energizer-gets-in-touch-with-its-feminine-side.aspx

Rich Duprey
August 1, 2013

Maybe we should have guessed it from the Energizer Bunny's pink fur, but battery maker Energizer Holdings (NYSE: ENR) is about to get more in touch with its feminine side.

Although it's probably best known for its Energizer and Eveready brands of consumer batteries, personal care products actually comprise the biggest source of the company's revenues, some 58% of total net sales and 53% of operating profits last quarter. Feminine care products, however, have comprised just a small component of those revenues (4%), until now. 

Energizer has announced it will be buying Johnson & Johnson's (NYSE: JNJ) feminine hygiene products business for $185 million cash that it will roll into its existing Playtex division, which it acquired in 2008. Included will be Stayfree pads, Carefree liners, and the o.b. tampon brands in the U.S., Canada, and Caribbean, which currently enjoy some $250 million in annual sales. J&J will also throw in its Canadian manufacturing facility with it.

Energizer's feminine care business, like several of its other divisions, could stand a visit from the pink bunny. Revenues fell 8% last quarter to $46 million as promotional activity like couponing sapped strength, but overall it also blamed wetter weather on falling sales in products like sun care. With a broader p