Energizer Holdings Inc said on Monday that it planned to buy S.C. Johnson & Son Inc's Edge and Skintimate brands for about $275 million, adding shaving creams and gels to its Schick-Wilkinson Sword razor business.
In lieu of cash, Energizer said it might give privately held S.C. Johnson semiannual dividends and nonvoting redeemable preferred shares with a liquidation preference of $310 million.
Energizer's razor business ranks second behind Procter & Gamble Co's Gillette, which sells its own shaving creams and gels.
Energizer said it would use the net proceeds from a new offering of 9.5 million shares to pay for the deal and for general corporate purposes, including the repayment of debt.
The offering includes an option for the underwriters to buy up to 1.425 million more shares to cover any overallotments, Energizer said.
Deutsche Bank Securities Inc was Energizer's financial advisor on the deal with S.C. Johnson. On the stock offering, J.P. Morgan, Merrill Lynch & Co and Deutsche Bank are joint book-running managers, while Moelis & Co LLC acted as financial advisor. (Reporting by Jessica Wohl; Editing by Lisa Von Ahn)