Energizer 2010 Annual Report Download - page 53

Exhibit 13
ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
43
On November 23, 2010, we completed the acquisition of American Safety Razor, LLC, a
Delaware limited liability company ("ASR"), as we acquired substantially all of the assets of
ASR, including the assets of its U.S. subsidiaries and the stock of its non-U.S. subsidiaries, and
assumed substantially all of the liabilities of ASR and its U.S. subsidiaries, for a cash purchase
price of $301. ASR, founded in 1875, is the leading global manufacturer of private label / value
wet shaving razors and blades, and industrial and specialty blades.
Our subsidiaries operate a number of manufacturing and packaging facilities in 14 countries on
five continents, and we employ almost 4,500 colleagues in the United States and more than
11,000 in foreign jurisdictions. These totals do not include the recently acquired ASR business,
which operates 9 manufacturing and packaging facilities in 6 countries and employs
approximately 1,200 colleagues globally.
Unless we indicate otherwise, we base the information concerning our industry contained or
incorporated by reference herein on our general knowledge of and expectations concerning the
industry. Our market position, market share and industry market size is based on our
estimates using our internal data and estimates, based on data from various industry analyses,
our internal research and adjustments and assumptions that we believe to be reasonable. We
have not independently verified data from industry analyses and cannot guarantee their
accuracy or completeness. In addition, we believe that data regarding the industry, market size
and our market position and market share within such industry provide general guidance but
are inherently imprecise. Further, our estimates and assumptions involve risks and
uncertainties and are subject to change based on various factors, including those discussed in
the “Risk factors” section of this Annual Report on Form 10-K. These and other factors could
cause results to differ materially from those expressed in the estimates and assumptions.
Industries
We operate in five distinct industries: battery and portable lighting products, wet shave, skin
care, feminine care and infant care. Our two largest categories by revenue are battery products
and wet shave. The battery category comprises two primary competitors, Energizer’s Energizer
and Eveready brands and Procter & Gamble’s Duracell, which we estimate collectively
represents approximately 70% in the markets in which we compete. The wet shave category
comprises two primary competitors, Procter & Gamble’s Gillette and Energizer’s Schick-
Wilkinson Sword, which we estimate collectively represents more than 80% of the global wet
shave market.
Household Products
Energizer’s Household Products division manufactures and markets one of the most extensive
product portfolios in household batteries, specialty batteries and portable lighting products.
In household batteries, we offer batteries using carbon zinc, alkaline, rechargeable and lithium
technologies. These products are marketed and sold into the price, premium and performance
segments. This allows us to penetrate the broad range of the market and meet most consumer
needs. We distribute our portfolio of household and specialty batteries and portable lighting
products through a global distribution network, which also provides a platform for the
distribution of our personal care products. Since Energizer’s invention of the first D cell battery
in 1893, we have been committed to developing and marketing innovative new products for the
portable power and portable lighting products market. Energizer’s long history of innovation
includes the first to market the Alkaline battery, the first mercury-free Alkaline battery, the first
mercury-free Hearing Aid battery and the “World’s Longest Lasting AA and AAA Battery in