Rayovac to buy Varta AG

Chain Drug Review, August 19, 2002

MADISON, Wis. -- As it looks to challenge Duracell Corp. and Energizer for a share of the overseas battery market, Rayovac Corp. has reached a deal to buy Varta AG's consumer battery business for $256.5 million.

The deal, which is expected to close this fall, does not include Varta's Brazilian joint venture or its automotive or micropower battery businesses. It will, however make Rayovac the exclusive worldwide distributor of microbatteries produced by Varta Microbatterie GmbH.

Most importantly for Rayovac, the deal makes the company the No. 2 battery supplier in Europe behind Gillette Co.'s Duracell and strengthens its position in Latin America--two increasingly important areas as the company battles with Duracell and Energizer to supply retailers around the world.

Rayovac chairman and chief executive officer Dave Jones said that the acquisition marks the most significant milestone in the company's history.

"The most meaningful thing we could do was to globalize our business," he noted the day after finalizing the deal.