DGAP-News: VARTA AG: VARTA AG successfully completes acquisition of VARTA Consumer Batteries business from Energizer

Corporate News

Ellwangen, 2 January 2020

VARTA AG successfully completes acquisition of VARTA Consumer Batteries business from Energizer

Today the battery manufacturer VARTA AG successfully completed the acquisition of the Europe-based VARTA Consumer Batteries business ("VARTA Consumer") from US-based Energizer Holdings, Inc. VARTA Consumer comprises numerous national subsidiaries and has its main production site in Dischingen, Germany. The European Commission had already approved the transaction on 3 December 2019; in this context, VARTA AG has made a commitment to continue to supply existing and potential customers with hearing aid batteries for a specified period of time.

With the acquisition of VARTA Consumer, VARTA AG has created a leading global manufacturer of battery solutions with a comprehensive product portfolio. As a result of the transaction, the worldwide VARTA brand rights for portable batteries, microbatteries and energy storage systems will once again be united under the umbrella of VARTA AG. This strengthens the brand image of VARTA products in all segments.

Herbert Schein, CEO of VARTA AG, said: "We are delighted to have successfully completed the transaction. With this deal, we are seizing the unique opportunity to bring together businesses that belong together. We are ideally positioned for the future, especially for the massive expansion of our highly profitable lithium-ion production."

VARTA AG acquired VARTA Consumer at an enterprise value of EUR 180 million. The final price will be determined on the basis of a closing balance sheet to be prepared on the closing date.

Steffen Munz, Chief Financial Officer (CFO) of VARTA AG, adds: "In the medium term, VARTA Consumer's attractive cash flow profile will play a crucial role in financing the further expansion of our rapidly growing lithium-ion production."

About VARTA AG

As the parent company of the Group, VARTA AG is active in the business segments Microbatteries and Power & Energy through its operating subsidiaries VARTA Microbattery GmbH and VARTA Storage GmbH. Already today an innovation leader in the microbatteries sector and one of the market leaders for hearing-aid microbatteries, VARTA Microbattery GmbH also aspires to market leadership for lithium-ion batteries in wearables and, in particular, hearables. VARTA Storage GmbH focuses on intelligent energy solutions for customized battery storage systems for OEM customers and the design, system

integration and assembly of stationary lithium-ion energy storage systems. The VARTA AG Group's operating subsidiaries are currently active in more than 75 countries around the world, with four production and assembly facilities in Europe and Asia as well as distribution centers in Asia, Europe and the USA.

About VARTA Consumer

VARTA Consumer based in Ellwangen, is a supplier of innovative quality products, including batteries, rechargeable batteries, chargers, portable power (power banks), special batteries and lights. VARTA Consumer Batteries stands for strong product ideas - developed with the know-how of more than 130 years -, quality, design and a wide product range. VARTA Consumer's strong focus on consumer lifestyles and close cooperation with retailers enables the company to respond fast and flexibly to current equipment trends with optimised energy solutions in the dynamic Fast Moving Consumer Goods (FMCG) market.