That rambunctious Energizer bunny not only has a split personality, but now, a split company. And Wall Street loves it.
In morning trading, Energizer Holdings rocketed about 15% to $111.82 per share, as Energizer announced plans to split into two separate and publicly traded companies.
One, which set the iconic bunny in motion, will sell batteries. The other, perhaps less familiar to some consumers, will sell household brands including Schick and Edge shaving gel.
Reason for the split: to give each company a clearer focus. The move comes at a time competitive pressures are increasingly forcing major manufacturers to ultra-focus on what they do best.
"Since becoming an independent company in 2000, Energizer has built two successful divisions and each is now well-suited to realize its full potential on a standalone basis," said CEO Ward M. Klein, in a statement.
The household products company will narrow its focus on selling Energizer and Eveready batteries. It accounted for $1.9 billion in revenue in the year that ended March 31.
Then, there's the new personal care company, with a variety of other brands ranging from the Platex brand to the Stayfree feminine care line to sweet-smelling Hawaiian Tropic and Banana Boat sun care lines. That division posted $2.6 billion in the year that ended March 31.
"We expect that Household Products will be well-positioned to leverage its leading brands and product portfolio to generate significant cash flows," said Klein, in the statement. "And the Personal Care business has achieved scale to be able to enhance its focus on continuing innovation and to drive top-line and market share growth."
Shares of both companies will be distributed to existing Energizer shareholders. Energizer expects the split to take place in the second half of fiscal 2015, which ends in September 2015.