Battery-maker Energizer to shut down its facility in Shaler
Plant closure will see 24 workers lose jobs
Energizer Holdings Inc., the battery, lighting and auto company that popularized the sweatband-wearing, drum-playing Energizer Bunny, is closing its facility in Shaler.
The plant on William Flinn Highway will close permanently and cease operations in June, according to a letter filed on Feb. 7 with the Pennsylvania Department of Labor and Industry. Energizer, which is based in St. Louis, will lay off all 24 employees, starting with the first wave on April 7.
This comes in the midst of Energizer’s announced plan to close and combine some of its distribution and manufacturing facilities in the country and internationally. It hopes to improve efficiency and save $60 million to $65 million annually as a result, according to a Securities and Exchange Commission filing.
The board of directors approved the closures in 2019, and Energizer expects them to be completed by December 2021.
Executive vice president and chief marketing officer Mark LaVigne has described the company’s move as a way to “streamline our integrated supply chain footprint.”
Energizer plans to move its North American batteries and lights distribution into a single facility in Indiana, combine its special battery production in Portage, Wis., and consolidate manufacturing for its auto care division in Dayton, Ohio, Mr. LaVigne said during a Feb. 5 earnings call with investors.
“To date, these efforts have been executed with excellence and put us in a strong position entering the season,” Mr. LaVigne said. “Once again, I want to acknowledge our colleagues across the business who are working as a unified team and have done a terrific job creating a strong combined company.”
At the same time, Energizer is celebrating its first full year since making two acquisitions last January: Spectrum Holdings Inc.’s global battery, lighting and portable power business, and its auto care business. Last month, Energizer sold Varta brands, part of its first acquisition with Spectrum last year.
Energizer reported net earnings attributable to common shareholders of $42.1 million, or 60 cents per share, in the quarter ended Dec. 31. That’s down from $70.8 million, or $1.16 per share, during the same time the previous year.
It reported net sales of $736.8 million, up from $571.9 million in 2018.
In an effort to increase growth, the company is making its iconic Energizer Bunny break even more of a sweat than usual. It’s launching a global rollout of the “Energizer visual identity” that will feature the famous mascot and the equally active battery Mr. Energizer in new packaging to increase brand recognition and bring in more customers.
“Our priorities in fiscal 2020 are to build momentum across our businesses, while also executing our integration plans with excellence,” Mr. LaVigne said.
A representative from the Energizer plant in Shaler could not be reached for comment.