The battery company buys the electric shaver business from the family of its famous pitchman.
By Associated Press
Published August 23, 2003
BRIDGEPORT, Conn. - Rayovac Corp. announced plans Friday to buy Remington Products Co., a designer and distributor of battery-powered electric shavers and grooming products, for $165-million.
Remington, based in Bridgeport, has been owned by the Kiam family for 24 years, along with Vestar Capital Partners since 1996. The company introduced the world's first electric shaver in 1937 and it is one of the oldest consumer brands, dating to 1816.
Rayovac, based in Madison, Wis., and the third-largest battery maker, said it will pay $165-million in cash and will assume $157-million in Remington debt, which will be retired.
Shares of Rayovac rose 65 cents, or nearly 5 percent, to close at $14.25 Friday on the New York Stock Exchange.
Remington is known for its television commercials in which former chairman Victor Kiam boasted: "I liked the shaver so much, I bought the company."
Tory Kiam, the former Remington CEO and son of the late pitchman, said his family had a rewarding 24-year association with the company.
"My father would have been very proud of the successes this company has achieved and the bright future it has secured with today's announcement," Kiam said.
The deal makes Rayovac the third company to combine battery and shaving businesses. The battery industry has been under pressure as a result of promotional battles among the players.
In March, Energizer Holdings Inc. completed its acquisition of Schick from Pfizer Inc. for $930-million. The idea was to complement Energizer's battery business, which competes with Gillette's Duracell.
For the year ending June 30, Remington reported sales of $360.3-million and net income of $20.2-million. Neil DeFeo is chairman, CEO and president of Remington.
"Remington is a well-known and respected brand with a sound reputation for quality and performance," said David Jones, Rayovac chairman and CEO. "Remington brings to Rayovac a strong record of solid growth and a line of shaving, grooming and personal care products that will provide exciting diversification to our current product offerings."
Rayovac and Remington share a similar customer base, the companies' products are sold through many of the same distribution channels and both companies are committed to technology and product innovation, Jones said.
Jones said in a conference call with analysts Friday that the acquisition is a major diversification and he predicted additional moves to do so. Most of Remington's products are battery-powered, and Rayovac can more aggressively expand the sale of the company's products internationally, he said.
Jones said there are no immediate plans for layoffs at Remington, which has about 700 employees.
The deal is expected to close within the next 60 days.
