Energizer buys air freshener maker HandStands for $340 million

The Energizer bunny keeps going and going. And now it's going to make your car smell better.

The battery maker announced Tuesday that it was acquiring automotive air-freshener maker HandStands from the private equity firm Trivest Partners for $340 million. HandStands is best known for its Refresh Your Car in-car air fresheners and Lexol leather cleaning wipes.

"HandStands represents a compelling strategic, operational and cultural fit for Energizer," said Alan Hoskins, CEO of Energizer in a statement announcing the deal.  "The HandStands business is complementary to our existing business with opportunities for growth." Energizer says the two business share similar customers and distribution channels and that leveraging Energizer's supply chain network will increase the companies' efficiencies.

The move comes amid continued steady growth in the automotive air freshener market. According to a report from Grand View Research late last year, the North America air freshener market is expected to reach $994.4 million by 2022, up from $764.1 million in 2014. HandStands had revenue of $128 million last year, 80% of which was from sales in the U.S.

Energizer will fund the deal with approximately $250 million in cash and the rest in debt. The acquisition is expected to close in the fourth quarter and Energizer predicts HandStands will boost its earnings by 15 to 20 cents per share in the first fiscal year and add at least $20 million to free cash flow.

Energizer shares (ENR)  closed up 6% to $47.26.

Follow Eli Blumenthal on Twitter @eliblumenthal