Newell Brands Announces Agreement to Sell Tools Brands to Stanley Black & Decker
October 12 2016 - 6:30AM
Business Wire
Newell Brands Inc. (NYSE: NWL) announced today it has entered
into a definitive agreement to sell its Tools business, including
the Irwin®, Lenox® and Hilmor® brands, to Stanley Black &
Decker. This agreement has been reached in the context of a series
of strategic changes announced last week related to the company’s
new corporate strategy.
“Newell Brands’ new strategic plan establishes a sharp set of
portfolio choices and investment priorities that will focus
resources on the businesses with the greatest potential for
growth,” said Michael Polk, Newell Brands Chief Executive Officer.
“The actions we are taking will strengthen the underlying
performance of the company and help unlock the unique opportunity
for transformative value creation connected to the combination of
Newell Rubbermaid and Jarden Corporation. While our Tools brands
have been very good contributors to our results, we believe they
will benefit from being part of Stanley Black & Decker, a
global leader in the tools category."
Gross proceeds from the divestiture are expected to be $1.95
billion, which includes retained accounts receivable, subject to
customary working capital and transaction adjustments. Net sales
for the divested business were approximately $760 million for the
last twelve months. The transaction is expected to close in the
first half of 2017, subject to certain customary conditions,
including regulatory approvals. Proceeds will be primarily used to
pay down debt in furtherance of the company’s stated goal of
achieving a leverage ratio of 3 to 3.5 times EBITDA by the end of
2018. If the transaction were to be completed on December 31, 2016,
the company would expect normalized EPS dilution of approximately
$0.15 on an annualized basis after the benefit of short term cost
actions and lower interest expense related to accelerated debt
repayment. J.P. Morgan acted as financial advisor to Newell Brands
on the transaction.
As previously announced, as the result of a recently completed
strategic review of its portfolio, Newell Brands has taken the
decision to hold a number of other businesses for sale including
its two winter sports units, V�lkl® and K2®, within the Outdoor
Solutions Segment, its Heaters, Humidifiers, and Fans business
within the Consumer Solutions Segment and the Rubbermaid® Consumer
Storage business within the Home Solutions segment. Newell Brands
will retain its Dymo® Industrial labeling business within the
reported Tools segment. The total 2015 net sales of the remaining
businesses held for sale is approximately $700 million. Sales
processes are underway and the company hopes to complete the
divestiture of the remaining assets held for sale within the first
half of 2017.
About Newell Brands
Newell Brands (NYSE: NWL) is a leading global consumer goods
company with a strong portfolio of well-known brands, including
Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®,
Jostens®, Marmot®, Rawlings®, Oster®, Sunbeam®, FoodSaver®, Mr.
Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®,
NUK®, Calphalon®, Rubbermaid®, Contigo®, First Alert®, Waddington
and Yankee Candle®. For hundreds of millions of consumers, Newell
Brands makes life better every day, where they live, learn, work
and play.
This press release and additional information about Newell
Brands are available on the company’s website,
www.newellbrands.com.
Forward-Looking
Statements
This news release contains forward-looking information based on
management's current views and assumptions, including statements
regarding the expected benefits of the Tools transaction, the
expected financial impact of the Tools transaction, the expected
timing of the Tools transaction, and the status and expected timing
of its other proposed divestitures. Actual events may differ
materially. Factors that may affect actual results include, but are
not limited to, our ability to execute upon our portfolio
management strategies, whether and when the required regulatory
approvals for the Tools transaction will be obtained, whether and
when the closing conditions will be satisfied and whether and when
the Tools transaction will close, the ability of Newell Brands to
execute on the results of its recently completed strategic review
of its portfolio, whether and when Newell Brands’ proposed
divestitures will sign and close and the risks associated with
strategic acquisitions and divestitures. Please refer to the
cautionary statements set forth in the "Forward-Looking Statements"
section of the Company's most recently filed Quarterly Report on
Form 10-Q as well as other factors listed in our filings with the
SEC (including the information set forth under the caption “Risk
Factors” in Newell Brands’ Annual Report on Form 10-K) for other
factors that could affect our business.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161012005482/en/
Investor Contact:Newell
Brands Inc.Nancy O’Donnell, +1-770-418-7723Vice President, Investor
Relationsnancy.odonnell@newellco.comorMedia Contacts:Newell Brands Inc.Tom
Sanford, +1-973-600-3880Vice President, Global
Communicationstom.sanford@newellco.comorWeber ShandwickLiz Cohen,
+1-212-445-8044liz.cohen@webershandwick.com
Newell Brands (NASDAQ:NWL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Newell Brands (NASDAQ:NWL)
Historical Stock Chart
From Sep 2023 to Sep 2024