Keeping it Simple With Energizer Holdings, Inc. (ENR)

Allied Against Procter

Not to focus too much on the negatives, though, as there is much to like about this company. As mentioned earlier, Energizer Holdings is much more than a battery company. One particular area of strength for the company is within their shaving segment. And if recent developments turn out well, that area of strength may become even stronger.

In an effort to better compete with The Procter & Gamble Company (NYSE:PG)’s world-dominating Gillette shaving brand, Energizer Holdings and the British-Dutch consumer goods giant Unilever plc (ADR) (NYSE:UL) have teamed up. A joint marketing effort between Energizer Holdings’ Schick and Unilever plc (ADR) (NYSE:UL)’s AXE, the two companies will be co-branding some their products together under the new AXE Schick brand. Launched a few months ago, this partnership saw the first of AXE Schick products hit store shelves with 10 SKUs adorned with the new co-branding.

Energizer in particular should benefit greatly from this association, as AXE’s young male customers are very loyal to the AXE brand. While the partnership, if successful, will presumably benefit Energizer Holdings more (the massive Unilever plc (ADR) (NYSE:UL) has a greater diversity of products), the partnership is important for both companies to better compete against The Procter & Gamble Company (NYSE:PG). Schick has already been making gains against Gillette in recent years. Together, the two companies should be able to grow their respective product segments and take share away from P&G.

Foolish Bottom Line

Energizer Holdings has a lot to offer investors, from its declining but still strong cash-generating battery segment, to its fast-growing literal razor-razor blades model and other acquired brands. The management team of this rather simple company has positioned Energizer Holdings to create value for shareholders for many years to come. Add in a decent 1.5% yield from a dividend that was initiated just 11 months ago and you have a potential long-term winner with Energizer Holdings.

Matthew Luke has no position in any stocks mentioned. The Motley Fool recommends Energizer Holdings, Procter & Gamble, and Unilever. Matthew is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Keeping it Simple With Energizer Holdings originally appeared on Fool.com is written by Matthew Luke.

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