Spectrum Brands Holdings is selling its Rayovac battery business to competitor Energizer Holdings as part of a transaction including Spectrum’s entire business cluster for batteries and lighting.

This $2 billion deal comes about two weeks after Spectrum had announced it would sell the Rayovac battery business in 2018. In a release, Spectrum says it will use the cash proceedings to reduce debt, reinvest in its core businesses “both organically and through bolt-on acquisitions,” and buy back shares.

“Today’s announcement is a culmination of our efforts to sell the Battery Business in order to refocus Spectrum Brands and enhance shareholder value,” said David Maura, executive chairman of Spectrum Brands Holdings. “While we have a long and proud heritage in the Battery Business, this is a key part of our reallocation of capital strategy towards a faster-growing and higher-margin Spectrum Brands.”

The stocks for both companies rose slightly with this news. At the close of the business day Tuesday, Spectrum Brands was at $125.23, up from $120.48 on Jan. 12. And Energizer Holdings was at $59.10, up from $51.62 on Jan. 12.

See more at WisBusiness.com.

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