Spectrum put the business up for sale earlier this month. Its share rose 3.4% to US$124.71 on the news.
“While we have a long and proud heritage in the battery business, this is a key part of our re-allocation of capital strategy towards a faster-growing and higher-margin Spectrum Brands,” said David Maura, the executive chairman of Spectrum Brands Holdings.
Shares in Energizer were up 17% at US$60.49 in early trade, as investors applauded the addition of the Rayovac and Varta brands to its portfolio.
"The acquisition of Spectrum Batteries represents a compelling strategic, operational, and financial fit for Energizer," said Alan Hoskins, the chief executive officer of Energizer.
"The combination will enable us to leverage Spectrum Brands' manufacturing assets, significantly expand our international business and enhance our long-term brand building capabilities,” he added.
Energizer intends to fund the acquisition through a combination of existing cash and committed debt facilities, expected to consist of a new term loan and senior notes. In addition, Energizer intends to maintain its existing senior notes, maturing in 2025.