Rayovac Acquires 85% of Ningbo Baowang China

Advanced Battery Technology,  Mar 2004  

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AROUND THE INDUSTRY

Rayovac of Madison, Wisconsin, signed an agreement to acquire 85% of the Ningbo Baowang Battery Company of Ninghai, China. The remaining 15% will continue to be held by company founder/general manager Dunyong Qian and by the Ningbo Baowang Investment Company.

The transaction, subject to approval by the Rayovac board of directors and the Chinese government, is expected to close within 60-90 days. Rayovac's investment will be $24 million and is expected to be accretive in the first year.

Ningbo Baowang, founded in 1995, produces alkaline and heavy-duty batteries for retail, OEM and private label customers. The company exports its batteries to customers throughout North and South America, Europe and Asia. In addition to export sales, Ningbo Baowang has 26 branches and regional sales offices and distribution throughout China.

Other principal selling shareholders include: Ningbo Veken Group Co., Ltd.; Polar Win Limited; and Heirigs & Associates, LLC. Heirigs & Associates will continue as consultants following the close of the transaction.

Copyright Seven Mountains Scientific, Inc. Mar 2004
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