Rayovac Corp. (Madison, WI) announced that it has entered into an agreement to purchase battery company Microlite SA (Sao Paulo, Brazil) for approximately $28 million in cash plus future payments based on Microlite's performance through June 30, 2005. Microlite is currently owned by VARTA AG (Germany) and Tabriza Brasil Empreendimentos Ltd. (Brazil).
Under the agreement, Rayovac will purchase all the outstanding stock of Microlite, which owns the Rayovac brand name in Brazil. The all-cash transaction, subject to various closing conditions, is expected to close within the next 60 to 90 days. Rayovac intends to use its cash flow from operations and its existing senior credit facility to fund the transaction. Microlite manufactures and sells both alkaline and zinc-carbon batteries as well as battery-operated lighting products, and it reported sales of approximately $53 million in 2003.
