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In 1996, Gillette acquired Duracell batteries for $7.3 billion in stock. The purchase was met with optimism not only by Gillette's senior management and its highly visible director, Warren Buffet, but also Wall Street analysts. The case highlights the numerous challenges that Gillette has encountered since its acquisition of Duracell. Despite the initial enthusiasm, Duracell has proven to be a drain on Gillette's earning and has cost Michael Hawley, James Kilt's predecessor as CEO, his job after only 18 months in the position - in large part for his inability to turn around the financial hemorrhaging at the Duracell division. The key strategy questions revolve around what can be done to turn around the battery business to help it achieve the potential for Gillette that everyone had assumed it possessed. The supplement Gillette's Energy Drain (B): Energizer's Acquisition of Schick, product 9B05M027 highlights Energizer's October 2003 acquisition of Schick.

This is a supplement to Gillett's Energy Drain (A): The Acquisition of Duracell, product 9B05M026. Highlighted is Energizer's acquisition of Schick. Gillette was just dabbling in batteries but its source of profits always been in razors and blades. Now, that business is under direct threat by Energizer, with its acquisition of Schick. This supplement provides an excellent example of multipoint competition, and raises the question, should Gillette have anticipated that the acquisition of a battery company would ultimately put razor profits at risk?