Energizer Holdings closed an agreement to acquire Spectrum Brands’ Global Battery and Portable Lighting Business for $2 billion in cash.

Anchored by the Varta and Rayovac brands, the portfolio has a longstanding history, global footprint and diversified range of products including alkaline, carbon zinc, hearing aid and nickel metal hydride rechargeable batteries as well as battery chargers and portable lighting products.

The combination will expand Energizer’s presence in a number of international markets, broaden Energizer’s product portfolio and manufacturing capabilities, and increase capacity for research and development.

Spectrum Batteries generated 2017 revenue and EBITDA of $866 million and $169 million, respectively. The acquisition price represents a transaction multiple of 7.5 times fiscal 2017 EBITDA, net of tax benefits with a net present value of approximately $100 million and including estimated run-rate synergies of $80 to $100 million and the costs to achieve.

“The acquisition of Spectrum Batteries represents a compelling strategic, operational and financial fit for Energizer,” said Alan R. Hoskins, CEO of Energizer. “The combination will enable us to leverage Spectrum Brands’ manufacturing assets, significantly expand our international business and enhance our long-term brand building capabilities as we broaden our portfolio with the Varta and Rayovac brands and our geographies with Spectrum Batteries’ passionate global colleagues.”

Energizer intends to fund the acquisition through a combination of existing cash and committed debt facilities, expected to consist of a new term loan and senior notes. Barclays and JPMorgan committed to provide financing for the transaction.

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

Barclays acted as exclusive financial advisor, and King & Spalding acted as legal counsel to Energizer on the transaction.