MADISON, Wis., March 16 /PRNewswire/ -- Rayovac Corp. (NYSE: ROV)
announces today a major expansion into the rechargeable battery market with
the acquisition of the retail business of Direct Power Plus (DPP) of New York,
a full line marketer of rechargeable batteries and accessories for cellular
phones and video camcorders with sales of $18.8 million in 1997. Major
customers of DPP include Sears and Wal-Mart.
As a result of the DPP acquisition, Rayovac will sell rechargeable
batteries, battery chargers and accessories for cellular phones and camcorders
to retailers under both Rayovac and DPP brand names. The acquisition did not
include the OEM portion of the DPP business which remains with the former
owner. The purchase price for the transaction includes an up-front payment of
$4.7 million, plus incentive payments over four years which are anticipated to
be approximately $2.7 million and which become due and payable based on
meeting variable profit targets each year. The actual incentive payments may
be higher or lower based on the actual profit targets achieved.
In addition to the DPP purchase, Rayovac also announces the launch of a
new line of rechargeable batteries for cordless telephones. These cordless
telephone rechargeable batteries will be sold under the Rayovac brand.
"With these developments, Rayovac becomes a major player in the
rechargeable battery marketplace," said Dave Jones, Rayovac chairman,
president and CEO. "These new additions will add more than 100 new items to
our product offerings. Customers and consumers can now turn to the Rayovac
brand as their one-stop source for both primary and rechargeable batteries."
Rayovac will now become one of America's major suppliers of rechargeable
batteries in the following chemical systems: nickel cadmium, nickel metal
hydride, lithium ion and sealed lead acid. Rayovac currently offers the
Renewals(R) rechargeable alkaline battery and charger system, the number one
selling rechargeable brand in the U.S. Rayovac also has plans to launch
merchandising innovations and category management tools, all designed to
organize rechargeable battery sections in stores and make shopping easier.
The launch of new cordless telephone rechargeable batteries and the
acquisition of DPP's business are part of Rayovac's aggressive growth strategy
to expand its product offerings and distribution. In December 1997, Rayovac
purchased BRISCO G.M.B.H. in Germany and BRISCO B.V. in Holland, distributors
and assemblers of customized hearing aid battery packages in Europe.
Rayovac recently announced record sales of $150.0 million for the first
fiscal quarter ending December 27, 1997. Rayovac recorded net sales of $432.6
million for fiscal year 1997.
Rayovac is the third largest U.S. manufacturer of batteries and battery-
operated lighting products. Rayovac began trading on the New York Exchange on
November 2l, 1997, under the symbol ROV. The Thomas H.Lee Company, a private
investment firm based in Boston, and its affiliates own the majority interest
SOURCE Rayovac Corporation
PHOTO: http: //www.newscom.com/cgi-bin/pub/pd/pdz?f=PRN/prnphotos&grid=2 or Newscom,
CONTACT: John Daggett of Rayovac, 608-275-4912