Rayovac of Madison, Wisconsin, has signed an agreement to acquire 85 percent of the equity interest in Ningbo Baowang Battery Company of Ninghai, China for $24 million.
The remaining 15 percent equity interest in the operation will continue to be held by Ningbo Baowang Investment Company and founder/general manager of Ningbo Baowang, Mr Dunyong Qian.
The transaction, which is subject to customary closing conditions including approval by the Rayovac board of directors and the Chinese government, is expected to close within 60-90 days.
Ningbo Baowang, founded in 1995, produces alkaline and heavy-duty batteries for retail, OEM and private label customers. The company exports its batteries to customers throughout North and South America, Europe and Asia.
‘With the alkaline battery market in China experiencing rapid growth and our global customers expanding throughout Asia, it is imperative that we increase our manufacturing capacity in that part of the world,’ said Dave Jones, Rayovac chairman and CEO. ‘The acquisition of Ningbo Baowang will enable us to accomplish this objective.’