In a release dated Jan. 3, Middleton-based Spectrum Brands Holdings Inc. said it is exploring strategic options for its Global Batteries & Appliances businesses “with the intention to sell the units during 2018.” According to CEO Andreas Rouvé, the company has received “multiple inquiries from prospective buyers” and is in active discussions with several.
Selling the batteries and appliance unit will allow the company to reduce debt and focus on its higher-margin divisions — hardware and home improvement, auto care, pet supplies, and home and garden, but it would also disassociate Spectrum from the Rayovac battery brand which has been in the Madison area since 1906.
At the end of the company’s fiscal year on Sept. 30, 2017, the Global Batteries & Appliances unit, which accounted for about 40% of overall sales, generated net sales of nearly $2 billion, operating income of $231 million, and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $317 million.
Spectrum Brands reported fiscal 2017 net sales of just over $5 billion, operating income of $561 million, and adjusted EBITDA of $956 million.
Over the last year, Spectrum Brands shares have fallen 10.6%.
