Consumer products company Spectrum Brands Holdings Inc. (SPB) - Get Report said Thursday that it had agreed to sell its global auto care business to Energizer Holdings Inc. (ENR) - Get Report in a deal valued at $1.25 billion.
St. Louis-based Energizer will pay Spectrum $937.5 million in cash and $312.5 million in stock. The acquisition is expected to close in the second fiscal quarter of 2019.
Spectrum's auto care business includes the Armor All, STP and A/C Pro brands, Energizer said in a statement, and posted $465 million in net sales for the fiscal year ended June 30.
Energizer is also looking to acquire Spectrum's battery and portable lighting business. Energizer said it amended its agreement regarding the proposed $2 billion deal and proposed a remedy to address the European Commission's concerns over the acquisition.
Energizer, which proposed acquiring Spectrum's battery business in January, said the plan includes divesting the Europe-based Varta consumer battery business, including manufacturing and distribution facilities in Germany. Energizer said the move will reduce the original deal's purchase price to $1.4 billion to $1.5 billion.
Spectrum, which is based in Middleton, Wisconsin, also makes such products as George Foreman grills, Rayovac batteries, Remington shavers, and Repel insect repellent.
Spectrum was down nearly 5% in recent trading, while Energizer slipped 6%.