2024-04-02 15:32:39 ET
Summary
- Energizer Holdings, Inc.'s acquisition of Spectrum Brands' battery business in 2018 has not yielded the expected earnings growth.
- This deal, and even another deal with Spectrum, were not sufficient to deliver on the pro forma projections from the first deal.
- Despite a low adjusted earnings multiple, negative organic growth and a high leverage ratio make investing in Energizer quite risky.
When Energizer Holdings, Inc. ( ENR ) announced its intention to acquire the battery business of Spectrum Brands (SPB) in 2018, the company was setting up to create a battery giant. Greater market power and costs synergies should in theory create a stronger business, yet lack of growth and a 5 times leverage ratio created real reasons to be concerned as well....
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Energizer: Lacking Energy Here