Energizer to buy shaving cream line

Reuters / May 12, 2009
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CHICAGO - Energizer Holdings Inc. said yesterday that it plans to buy S.C. Johnson & Son Inc.'s Edge and Skintimate brands for $275 million, adding shaving creams and gels to its Schick-Wilkinson Sword razor business.

Shares of Energizer were down 4.28 percent yesterday as investors reacted to the company's latest acquisition and plans for a new offering of 9.5 million shares.

If the common stock offering were unsuccessful, Energizer said it would give privately held S.C. Johnson $310 million in nonvoting redeemable preferred shares, along with semiannual dividends, instead of the $275 million in cash.

St. Louis-based Energizer, best known for its batteries, bought Schick-Wilkinson Sword from Pfizer Inc. in March 2003.

Energizer's razor business ranks second behind Procter & Gamble Co.'s Gillette.

P&G is also the leader in the US market for men's preshave products such as creams and gels, with a 39.2 percent share, followed by Edge with a 21.5 percent share, according to Euromonitor International. In women's preshave products, Skintimate leads with a 65.7 percent share, followed by Gillette Satin Care with a 25.6 percent share, according to Euromonitor.