Rayovac 2003 Annual Report Download - page 6

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Page 4/5
It also broadened our product portfolio and provided us with a European manufacturing
and distribution infrastructure, thereby increasing our ability to serve our global
retail customers.
Our next step was to capitalize on our newly expanded global presence by diversifying
our product line. Rayovac’s history is as a manufacturer and marketer of battery and
lighting products. By acquiring Remington Products Company at the close of fiscal 2003,
we significantly broadened our product mix. The addition of Remington electric shavers,
grooming and other personal care products was an important first move toward meeting
our product diversification goals.
Remington, a highly respected global brand, is an ideal complement to the Rayovac and
Varta brands. Remington also shares with Rayovac and Varta an outstanding record of
growth and a commitment to innovation, quality and value. Through this acquisition, we
have enhanced our ability to leverage our global distribution system and customer base.
We have decreased our reliance on a single product and industry. Moreover, we have
propelled Rayovac into new channels and new markets with new competitors, thereby
providing access to a range of growth opportunities.
Meeting the Challenges of Integration Rayovac has repeatedly demonstrated its
success in integrating acquisitions. In 1999, we expanded our global presence through
the integration of ROV Ltd., a Latin American battery company. In fiscal 2003, we
demonstrated our expertise once again with the highly successful integration of the
Varta consumer battery business, a move that has generated significant cost synergies
at lower costs than originally anticipated.
During the year, we also implemented a series of restructuring initiatives that maximized
operating efficiencies and merged the Rayovac and Varta businesses around the world
into three fully integrated regional business units: North America, Latin America and
Europe/Rest of World. By combining each company’s strengths, we streamlined our
business, reduced our combined operating costs by more than $40 million, and offered
our customers enhanced service. We also continued to invest in our implementation of
the SAP enterprise system in order to support the operation of our global business. This
involved upgrading to the current production release of the software and installing the
package in some remaining countries where it was not yet operating.
Our acquisition of Varta and the accompanying restructuring had a dramatic impact on
our year-over-year financial results. Fiscal 2003 sales increased to $922.1 million, compared
Rayovac Corporation
2003 Annual Report