Battery and razor maker Energizer Holdings Inc. said on Thursday it would buy Playtex Products Inc. in an all-cash deal worth about $1.16 billion, plus the assumption of debt.
The deal would allow Energizer to diversify its product range and grow its personal care product category. Playtex makes sun-screen products like Banana Boat and Hawaiian Tropic, and markets a range of feminine care and infant care products.
Energizer will pay $18.30 a share for shares of Playtex, a premium of 17.9 percent to Playtex's closing price of $15.52 on Thursday on the New York Stock Exchange.
St Louis-based Energizer said it would finance the acquisition through cash and credit facilities.
We see Playtex as an exceptionally great fit with Energizer, with similar customers and distribution channels in the U.S. and Canada, and the opportunity for geographic expansion, Energizer Chief Executive Ward Klein said in a statement.
The deal, approved unanimously by the boards of directors of both companies, has an enterprise value of about $1.9 billion.