Energizer Holdings Inc (NYSE: ENR) and Spectrum Brands, Inc. (NYSE: SPB) are both having a strong day in the market today, and for good reason. The company’s announced a deal that will benefit both sides. Today, we’ll talk about the deal, what we’re seeing from ENR and SPB, and what we’ll be watching for ahead.
ENR And SPB Head Up On Asset Purchase Agreement
As mentioned above, Energizer and Spectrum Brands are both having a relatively strong day in the market today. The gains come after the companies issued press releases, informing investors that they have entered into a definitive agreement.
In the release, ENR and SPB said that Spectrum Brands will sell its Global Battery and Lighting Business to Energizer. ENR will pay a total of $3.0 billion in cash. In a statement, Andreas Rouve, CEO at SPB, had the following to offer:
“Through this transaction, we are making progress towards repositioning ourselves with an increased focus on our remaining business of Hardware & Home Improvement, Global Auto Care and Pet, Home & Garden. We are focusing our portfolio to strengthen our business and drive long-term growth and shareholder value.
Our global battery business is a true reflection of Spectrum Brands’ strengths – a portfolio of well-known and widely trusted brands driven by a culture of innovation and by passionate people to generate consistent results… We are pleased to be selling to owners who can deliver the necessary resources and market expertise, and provide strong support for our people and the business’ future growth plans.”
What We’re Seeing From The Stocks
As investors, one of the first things that we learn when we start to dabble in the market is that the news causes movements. So, it only makes sense that with such positive news, both Energizer Holdings and Spectrum Brands are finding their way up in the market today. Currently (12:28), ENR is trading at $58.73 per share after a gain of $7.11 per share or 13.77% while SPB trades at $123.02 per share after a gain of $2.54 per share or 2.11% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on both ENR and SPB. In particular, we’re interested in following ENR to see what they do with the newly acquired assets while watching SPB to follow their restructuring and refocusing plans in improving their core businesses. Nonetheless, we’ll continue to follow both stories and bring the news to you as it breaks!
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