Edgewell Edges Towards Energizer Spin

Like the famed bunny, the Energizer Holdings (ENR) spinoff just keeps on going more than a year after the initial announcement. These things do take awhile and it’s not like progress isn’t being made. For example, the company recently announced a $600m notes offering for the future household products company (mainly batteries) which will retain the Energizer name and ticker after being spun off.

Additionally, it previously unveiled the name of the personal care company, technically the ‘parent’ company, as Edgewell Personal Care. A somewhat surprising choice, given the plethora of famous brands in its portfolio such as Schick, Wilkinson Sword and Playtex. I am always bemused by the choice to include an industry (like ‘personal care’) in a company name. Just sounds silly – even Dunkin Donuts is Dunkin Brands. Maybe it makes the job easier for the marketing guys by bludgeons consumers on the head?

So how did they come up with the name Edgewell?

Edgewell” is a newly coined word created by combining two familiar terms. “Edge” expresses the company’s drive to be on the leading edge of innovation and to deliver meaningful advantages over competitive products. It also evokes the rich heritage of the company’s largest global business: shaving, which is literally about putting an edge on blades. “Well” reflects the company’s ultimate goal as a Personal Care business: to deliver well-being for the people who use its products. Furthermore, it speaks to a commitment that everything created will be well-designed and well-made.

Hmmmm….I never would have guessed it was a combo of ‘edge’ and ‘well’.  Not too overboard though, but what about the logo?

The Edgewell logo will be accompanied by a hummingbird symbol in a fresh aqua blue with clean, modern lines. As alluded to by its name, Edgewell intends to continue Energizer’s legacy as a challenger brand. The hummingbird is the ultimate challenger of the natural world: fast and agile, smaller than some, but strong and resourceful.  And, like Edgewell’s brands, the hummingbird surprises and delights, making people feel good.

aaaaaaand there it is. I don’t think I have ever seen such effusive praise for the modest hummingbird. They surprise. They delight. They even make people feel good…all while maintaining the moniker ‘ultimate challenger’ of the natural world? Impressive. The Chief Marketing Officer, Al Robertston believes the logo is ‘an emotionally engaging symbol that expresses our values, and it will help us to stand apart from the more traditional corporate logos in our industry’. No doubt about that.

In addition to a new name and some debt, both companies also unveiled their future board of director members. Here is Energizer’s board:

  • J. Patrick Mulcahy, Chairman of the Board
  • Alan Hoskins, Chief Executive Officer of future Energizer Holdings, Inc.
  • Bill Armstrong
  • Cynthia Brinkley
  • Kevin Hunt
  • James Johnson
  • John Klein
  • W. Patrick McGinnis
  • Patrick Moore
  • John Roberts

and Edgewell’s (6 independent):

  • Ward Klein, Executive Chairman of the Board
  • David Hatfield, Chief Executive Officer of Edgewell Personal Care Company
  • Daniel Heinrich
  • Carla Hendra
  • R. David Hoover
  • John Hunter III
  • James Johnson
  • Rakesh Sachdev

Finally, a few iterations of the Form 10 have been released and hopefully, we will have a chance to review the filing in more depth prior to the spin. After all, Buffett recently acquired Duracell so maybe there is something worth looking at here. The spin is expected to be completed by July 1st and the new company will trade on the NYSE under the ticker ‘EPC’.

Disclosure: Author holds no position in any stock mentioned.