Fate of Playtex work force unclear following Energizer’s $1.9B buyout
Two years after issuing an invitation to potential acquirers, Playtex Products Inc. is being bought out for $1.9 billion by Energizer Holdings Inc., a St. Louis battery company famous for its Energizer Bunny ad campaign.
Playtex is based in Westport and has its own hutch of iconic personal-care brands, including Playtex tampons, Banana Boat sunscreen and Diaper Genie disposal units.
The deal does not include Playtex bras, which are sold by Hanesbrands Inc.
Playtex was founded in 1932 as International Latex Corp. in Rochester, N.Y. In the past three decades, the company”™s ownership has changed hands multiple times, including a 1994 public offering of stock.
As of March, Harbinger Capital Partners was its largest shareholder with a 20 percent stake followed by Fidelity Investments parent FMR Corp. at 13 percent.
For the 12-month period ending in March 2007, Playtex earned $34 million on revenue of $641 million. The sales totals exclude that of Hawaiian Tropic lotions, which Playtex recently acquired and which produced $112 million in revenue in 2006.
In its most recent 12-month period, Energizer had a $279 million profit on $3.3 billion in revenue.
It was Energizer”™s first acquisition since 2003, when the company purchased Pfizer Inc.”™s Schick-Wilkinson Sword razor division in Milford. At the time Schick had roughly Playtex”™s revenue today; since then, Schick revenue has topped $1 billion.
Executives did not immediately specify what impact the new acquisition might have on Playtex”™s work force of 1,250, except to indicate that the companies would achieve savings through the elimination of overlapping corporate functions. In a conference call with analysts, Energizer CEO Ward Klein said the company would consider combining Playtex”™s and Schick”™s operations, but said it was too early to comment further.