Spectrum Brands Holdings Inc. has entered into a definitive agreement to sell its Global Battery and Lighting Business to Energizer Holdings Inc. for $2 billion in cash. The company expects to use the net cash proceeds after tax and transaction costs to reduce debt, reinvest in its core businesses both organically and through bolt-on acquisitions and repurchase shares.

“Today’s announcement is a culmination of our efforts to sell the battery business in order to refocus Spectrum Brands and enhance shareholder value. While we have a long and proud heritage in the battery business, this is a key part of our re-allocation of capital strategy toward a faster-growing and higher-margin Spectrum Brands,” said David Maura, executive chairman of Spectrum Brands Holdings.

Andreas Rouvé, CEO of Spectrum Brands Holdings, said, “Through this transaction, we are making progress toward repositioning ourselves with an increased focus on our remaining businesses of Hardware & Home Improvement, Global Auto Care and Pet, Home & Garden. We are focusing our portfolio to strengthen our business and drive long-term growth and shareholder value.

“Our Global Battery Business is a true reflection of Spectrum Brands’ strengths – a portfolio of well-known and widely trusted brands driven by a culture of innovation and by passionate people to generate consistent results,” added Rouvé. “We are pleased to be selling to owners who can deliver the necessary resources and market expertise, and provide strong support for our people and the business’ future growth plans.”

The transaction is expected to close prior to the end of calendar 2018, subject to customary closing conditions, including regulatory approvals.

Spectrum Brands previously announced on Jan. 3 that it was exploring strategic alternatives for its Global Batteries & Appliances (GBA) businesses. Spectrum Brands is actively marketing its Appliances business.

RBC Capital Markets acted as exclusive financial adviser and Kirkland & Ellis LLP acted as legal advisor to Spectrum Brands in connection with the transaction.