SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A (AMENDMENT NO. 2) CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 August 9, 1999 -------------------------------------------------- (Date of earliest event reported) Rayovac Corporation - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) Wisconsin 001-13615 22-2423556 - -------------------------- ---------------------------- ------------------------ (State of (Commission File No.) (IRS Employer Incorporation) Identification No.) 601 Rayovac Drive, Madison, Wisconsin 53711 - -------------------------------------------------------------------------------- (Address of principal executive offices, including zip code) (608) 275-3340 - ------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Page 1 of 3
This second amendment to the Company's Form 8-K amends and supplements certain of the exhibits thereto. Item 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS c) EXHIBITS EXHIBIT NUMBER DESCRIPTION 2.1* Share Purchase Agreement made as of June 11, 1999, by and among the Company, Vidor Battery Company, Rayovac Latin America, Ltd., substantially all the shareholders of ROV Limited, ROV Limited, ESB ROV Ltd., Duranmas, S.A., certain second-tier subsidiaries of ROV Limited, Ray-O-Vac Overseas Corporation, and Alfredo J. Diez and Richard T. Doyle, Jr., as selling group representatives. 2.2* Form of Stock Purchase Agreement entered into on or around June 11, 1999, by and among the Company, Rayovac Latin America, Ltd. and certain persons who hold minority interests in certain of the operating subsidiaries of Ray-O-Vac Overseas Corporation. 4.11* Second Amended and Restated Credit Agreement, dated as of August 9, 1999, by and among the Company, the lenders party thereto and Bank of America, N.A. as Administrative Agent. 4.12* Second Supplemental Indenture dated as August 6, 1999 by and among the Company, ROV Holding Inc., Rovcal, Inc., Vidor Battery Company and HSBC Bank USA. 23.1 Written consent of PricewaterhouseCoopers LLP. 99.1* Consolidated Financial Statements of ROV Limited and Subsidiaries (with report of independent certified public accountants thereon). 99.2* Unaudited Condensed Consolidated Financial Statements of ROV Limited and Subsidiaries. 99.3 Unaudited Pro Forma Condensed Consolidated Financial Statements. * previously filed Page 2 of 3
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. RAYOVAC CORPORATION Date: October 26, 1999 By: /S/ Randall J. Steward ------------------------ Name: Randall J. Steward Title: Executive Vice President of Administration and Chief Financial Officer Page 3 of 3
Exhibit 23.1 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS We consent to the incorporation by reference in the registration statement of Rayovac Corporation on Form S-8 (File No. 333-42443) of our report dated March 31, 1999, except for notes 6 and 13, as to which the date is June 11, 1999, on our audit of the consolidated financial statements of ROV Limited as of December 31, 1998, and for the year then ended, which report is included in this Form 8-K/A. PricewaterhouseCoopers LLP Miami, Florida October 25, 1999
Exhibit 99.3 Unaudited Pro Forma Condensed Consolidated Financial Statements The accompanying unaudited pro forma condensed consolidated balance sheet as of July 4, 1999 reflects the combined financial position of Rayovac Corporation (the "Company"), after giving effect to the acquisition of (1) the consumer battery business of ROV Limited and Subsidiaries ("ROV Limited") and (2) the license held by ROV Limited to use the "Rayovac" trade name and trademark (collectively the "Acquisition"), as if the transaction had been consummated as of July 4, 1999. The unaudited pro forma condensed consolidated statements of operations reflect the Company's historical operating results for the nine months ended July 4, 1999 and fiscal year ended September 30, 1998 with ROV Limited's historical results for the nine months ended June 25, 1999 and fiscal year ended December 31, 1998, respectively, and include pro forma adjustments as if the transaction had been consummated at October 1, 1997. The unaudited pro forma statements of operations for the nine months ended June 25, 1999, include the three month period ended December 31, 1998, which also was included in the fiscal year ended December 31, 1998. Summarized operating information about the duplicate quarter is as follows: Net Sales $29,652 Gross Profit 12,474 Total Operating Expenses 6,350 Income from Operations 6,124 Net Income 4,916 Acquisition related expenditures, which the Company estimates will be approximately $4.1 million on a pre-tax basis, were included in the unaudited pro forma condensed consolidated balance sheet. The Company anticipates that approximately $0.4 million of non-recurring acquisition related expense on a pretax basis and an extraordinary item of approximately $3.8 million (approximately $2.4 million net of tax) related to the write-off of unamortized debt finance fees will be recognized within the twelve months succeeding the transaction. These charges are not reflected in the unaudited pro forma condensed consolidated statements of operations. The pro forma adjustments, which are described in the accompanying notes, are based on available information and certain assumptions that management of the Company believe are reasonable. The unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the operating results or financial position that would have been achieved if the Acquisition had been consummated on the dates indicated, nor are they necessarily indicative of the future operating results or financial position of the combined company. The unaudited pro forma condensed consolidated financial statements do not give effect to any cost savings or integration costs which may result from the combination of the Company's and ROV Limited's operations. These unaudited pro forma condensed consolidated financial statements are based on, and should be read in conjunction with, the historical consolidated financial statements and related notes thereto of the Company (previously filed) and ROV Limited (included herein). 1
RAYOVAC CORPORATION Unaudited Pro Forma Condensed Consolidated Balance Sheet as of July 4, 1999 (In thousands, except per share amounts) Historical ------------------------------------------ Rayovac ROV LTD Corporation and Subsidiaries As of As of 7/4/99 6/25/99 ------ ------- -ASSETS- Current assets: Cash and cash equivalents $ 1,384 $ 13,096 Receivables 90,391 14,561 Inventories 66,053 14,911 Prepaid expenses and other 20,046 1,172 ------------------------------------------ Total current assets 177,874 43,740 Property, plant and equipment, net 79,202 16,059 Investments - 50 Goodwill 7,183 - Tradename - - Deferred charges and other 35,298 1,100 ------------------------------------------ Total assets $ 299,557 $ 60,949 ------------------------------------------ ------------------------------------------ -LIABILITIES AND SHAREHOLDERS' EQUITY - Current liabilities: Current maturities of long-term debt $ 7,485 $ 6,294 Accounts payable 56,967 4,988 Accrued liabilities: Wages and benefits and other 24,273 6,318 Recapitalization and other special charges 2,384 - ------------------------------------------ ------------------------------------------ Total current liabilities 91,109 17,600 Long-term debt, net of current maturities 151,660 9 Employee benefit obligations, net of current portion 12,279 3,374 Minority Interest - 3,681 Other 3,975 508 ------------------------------------------ Total liabilities 259,023 25,172 Shareholders' equity 40,534 35,777 ------------------------------------------ Total liabilities and shareholders' equity $ 299,557 $ 60,949 ------------------------------------------ ------------------------------------------ --------------------- Pro Forma Pro Forma Eliminations (A) Adjustments(b) Consolidated) ---------------- -------------- ------------- Current assets: Cash and cash equivalents $ (9,234) $ - $ 5,246 Receivables (4,860) (39) 100,053 Inventories (7) (448) 80,509 Prepaid expenses and other (158) (2,804) 18,256 --------------------------------------------------------------- Total current assets (14,259) (3,291) 204,064 Property, plant and equipment, net (82) 12,732 107,911 Investments - - 50 Goodwill - 28,196 35,379 Tradename - 90,000 90,000 Deferred charges and other (150) - 36,248 --------------------------------------------------------------- Total assets $ (14,491) $ 127,637 $ 473,652 --------------------------------------------------------------- --------------------------------------------------------------- -LIABILITIES AND SHAREHOLDERS' EQUITY - Current liabilities: Current maturities of long-term debt $ - $ - $ 13,779 Accounts payable (2,610) - 59,345 Accrued liabilities: Wages and benefits and other (956.0) 7,025 36,660 Recapitalization and other special charges - - 2,384 --------------------------------------------------------------- --------------------------------------------------------------- Total current liabilities (3,566) 7,025 112,168 Long-term debt, net of current maturities - 149,145 300,814 Employee benefit obligations, net of current portion - - 15,653 Minority Interest (3,681) - Other - - 4,483 --------------------------------------------------------------- Total liabilities (7,247) 156,170 433,118 Shareholders' equity (7,244) (28,533) 40,534 --------------------------------------------------------------- Total liabilities and shareholders' equity $ (14,491) $ 127,637 $ 473,652 --------------------------------------------------------------- --------------------------------------------------------------- SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THESE STATEMENTS. 2
RAYOVAC CORPORATION Unaudited Pro Forma Condensed Consolidated Statement of Operations (In thousands, except per share amounts) Historical --------------------------------------- Rayovac ROV LTD Corporation and Subsidiaries 9 Months 9 Months Ended 7/4/99 Ended 6/25/99 ------------------ -------------------- Net sales $ 391,951 $ 73,339 Cost of goods sold 203,883 42,504 ----------------------------------------- Gross profit 188,068 30,835 Selling 113,148 10,456 General and administrative 25,971 8,240 Research and development 6,408 - Other special charges 2,220 - ----------------------------------------- Total operating expenses 147,747 18,696 Income from operations 40,321 12,139 Other expense (income): Interest expense 10,778 990 Other expense (income) (452) (1,177) ----------------------------------------- 10,326 (187) Income before income taxes and extraordinary item 29,995 12,326 Income tax expense 10,789 2,732 ----------------------------------------- Income before extraordinary item 19,206 9,594 Extraordinary item - - ----------------------------------------- Net Income $ 19,206 $ 9,594 ----------------------------------------- ----------------------------------------- BASIC EARNINGS PER SHARE Average shares outstanding 27,485 Income before extraordinary item $ 0.70 Extraordinary item ------------------- ------------------- Net income $ 0.70 ------------------- ------------------- DILUTED EARNINGS PER SHARE Average shares outstanding and common stock equivalents 29,262 Income before extraordinary item $ 0.66 Extraordinary item ------------------- ------------------- Net income $ 0.66 ------------------- ------------------- Pro Forma Pro Forma Adjustments Consolidated --------------- ------------------- Net sales $ (2,761) (A) $ 462,529 Cost of goods sold (2,178) (A) 244,209 ---------------- ------------------- Gross profit (583) 218,320 Selling - 123,604 General and administrative 1,338 (A)(C) 35,549 Research and development - 6,408 Other special charges - 2,220 ---------------- ------------------- Total operating expenses 1,338 167,781 Income from operations (1,921) 50,539 Other expense (income): Interest expense 8,949 (D) 20,717 Other expense (income) - (1,629) ---------------- ------------------- 8,949 19,088 Income before income taxes and extraordinary item (10,870) 31,451 Income tax expense (2,833) (E) 10,688 ---------------- ------------------- Income before extraordinary item (8,036) 20,764 Extraordinary item - - ---------------- ------------------- Net Income $ (8,036) $ 20,764 ---------------- ------------------- ---------------- ------------------- BASIC EARNINGS PER SHARE Average shares outstanding 27,485 Income before extraordinary item $ 0.76 Extraordinary item ------------------- ------------------- Net income $ 0.76 ------------------- ------------------- DILUTED EARNINGS PER SHARE Average shares outstanding and common stock equivalents 29,262 Income before extraordinary item $ 0.71 Extraordinary item ------------------- ------------------- Net income $ 0.71 ------------------- ------------------- 3[caad 234]I
RAYOVAC CORPORATION Unaudited Pro Forma Condensed Consolidated Statement of Operations (In thousands, except per share amounts) Historical ---------------------------------------- Rayovac ROV LTD Corporation and Subsidiaries 12 Months 12 Months Pro Forma Ended 9/30/98 Ended 12/31/98 Adjustments ------------------ -------------------- --------------- Net sales $ 495,733 $ 97,057 $ (5,456) Cost of goods sold 258,027 58,515 (3,819) ----------------------------------------------------------- Gross profit 237,706 38,542 (1,637) Selling 148,875 13,689 - General and administrative 35,877 10,432 2,940 Research and development 6,226 - - Other special charges 6,183 - - ----------------------------------------------------------- Total operating expenses 197,161 24,121 2,940 Income from operations 40,545 14,421 (4,577) Other expense (income): Interest expense 15,670 1,213 11,931 Other expense (income) (155) 995 - ----------------------------------------------------------- 15,515 2,208 11,931 Income before income taxes and extraordinary item 25,030 12,213 (16,508) Income tax expense 8,660 3,131 (4,390) ----------------------------------------------------------- Income before extraordinary item 16,370 9,082 (12,119) Extraordinary item (1,975) - - ----------------------------------------------------------- Net Income $ 14,395 $ 9,082 $ (12,119) ----------------------------------------------------------- ----------------------------------------------------------- BASIC EARNINGS PER SHARE Average shares outstanding 26,477 Income before extraordinary item $ 0.62 Extraordinary item (0.08) ------------------- ------------------- Net income $ 0.54 ------------------- ------------------- DILUTED EARNINGS PER SHARE Average shares outstanding and common stock equivalents 28,091 Income before extraordinary item $ 0.58 Extraordinary item (0.07) ------------------- ------------------- Net income $ 0.51 ------------------- ------------------- Pro Forma Consolidated ------------------- Net sales (A) $ 587,334 Cost of goods sold (A) 312,723 ------------------- Gross profit 274,611 Selling 162,564 General and administrative (C) 49,249 Research and development 6,226 Other special charges 6,183 ------------------- Total operating expenses 224,222 Income from operations 50,389 Other expense (income): Interest expense (D) 28,814 Other expense (income) 840 ------------------- 29,654 Income before income taxes and extraordinary item 20,735 Income tax expense (E) 7,401 ------------------- Income before extraordinary item 13,333 Extraordinary item (1,975) ------------------- Net Income $ 11,358 ------------------- ------------------- BASIC EARNINGS PER SHARE Average shares outstanding 26,477 Income before extraordinary item $ 0.50 Extraordinary item (0.08) ------------------- ------------------- Net income $ 0.42 ------------------- ------------------- DILUTED EARNINGS PER SHARE Average shares outstanding and common stock equivalents 28,091 Income before extraordinary item $ 0.47 Extraordinary item (0.07) ------------------- ------------------- Net income $ 0.40 ------------------- ------------------- 4
Notes to unaudited pro forma condensed consolidated financial statements. (A) To reflect elimination of (1) sales and cost of goods sold for shipments from the Company to ROV Limited, (2) receivables and payables between the Company and ROV Limited, (3) removal of assets and liabilities of ROV Limited subsidiaries not purchased by Rayovac and (4) removal of expenses booked by ROV Limited in the period October through December 1998 that relate to prior periods. (B) To reflect the excess of acquisition cost over the estimated fair value of net assets acquired (goodwill). The purchase price, purchase-price allocation, and financing of the transaction are summarized as follows: Acquisition Price: Purchased price paid through additional borrowings $149,145 Other 2,804 -------------------- $151,949 Allocated to: Historical book value of acquired assets and liabilities $28,533 Adjustments to reflect assets and liabilities at fair value Receivables (39) Inventory (448) Property, plant, & equip. (primarily land) 12,732 Trade name 90,000 Liabilities and restructuring accruals to eliminate excess capacities at the acquired entity (7,025) -------------------- Total allocation $123,753 -------------------- Excess purchase price over allocation to identifiable assets and liabilities (goodwill) at July 4, 1999 $28,196 Adjustment for operations through acquisition date (610) -------------------- Goodwill at acquisition date $27,586 The consideration to be paid for the acquisition is subject to adjustments based on changes in the net book value of assets acquired. In addition certain valuations and related income tax effects are preliminary and subject to change. (C) To reflect the amortization of goodwill and trade name on a straight line basis over 40 years. The principal factors considered in determining the use of a 40 year amortization period include; (1) the Rayovac trade name has been in existence for approximately 80 years and is considered viable indefinitely and (2) the existing and projected cash flows are adequate to support the carrying value of the intangible assets to be recorded. (D) To reflect the increase in interest expense resulting from the amended senior credit facilities to finance the purchase price. The interest rate on the amended senior credit facilities is assumed to be 7.43 percent. A change of 1/8 percent in the interest rate would result in a change in annual interest expense and net income of $293 and $187 before and after taxes, respectively. 5
(E) To reflect the income tax effect of (1) increased interest and amortization of a portion of the trade name and (2) the margin eliminated on sales between the Company and Rayovac Limited assuming a tax rate of 36 percent. The remaining portion of the trade name and all the goodwill is in a non taxed entity. 6