(Reuters) - Consumer products company Spectrum Brands Holdings Inc (SPB.N) said on Thursday it would sell its global auto care (GAC) business to battery maker Energizer Holdings Inc (ENR.N) in a cash-and-stock deal valued at about $1.25 billion.
Energizer said the move will bolster its portfolio with well-known autocare brands such as Armor All, STP motor oils and A/C Pro, as it seeks to diversify and reach more retailers.
Energizer will pay Spectrum $937.5 million in cash and $312.5 million in stock.
Spectrum Auto Care recorded sales of $465 million in the last fiscal year, accounting for nearly 15 percent of Spectrum Brands’ total annual sales.
This will be Energizer’s second deal with Spectrum this year. In January, it proposed to buy the consumer company’s battery and portable lighting business for $2 billion - a deal that is still under regulatory review.
To speed up the approval process, Energizer proposed on Thursday to allay the European Commission’s concerns over the acquisition, saying it would divest Europe-based Varta consumer battery business that was part of the deal.
That move is expected to reduce original deal’s value to between $1.4 billion to $1.5 billion.
RBC Capital Markets and Credit Suisse were Spectrum Brands’ financial advisers while Evercore acted as Energizer’s financial adviser for the GAC business deal.
Shares of Spectrum Brands, which makes George Foreman cookware and Remington grooming products, were up 5 percent. Energizer was trading down 1.6 pct.
Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber