Newell Brands Announces Continued Progress Simplifying and Strengthening Portfolio
January 13 2017 - 8:30AM
Business Wire
Completes Acquisition of Fast-Growing WoodWick®
Candle Business
Reaches Agreement to Sell Rubbermaid® Consumer
Storage Totes Business
Holds Pine Mountain® and part of Diamond®
Brands for Sale
Newell Brands Inc. (NYSE:NWL) today announced continued
progress with its ongoing effort to simplify and strengthen its
portfolio, sharpening the company’s strategic focus for accelerated
growth.
The company has completed its acquisition of Smith Mountain
Industries, a leading provider of premium home fragrance products,
sold primarily under the WoodWick® Candle brand, for $100 million,
subject to customary working capital adjustments. Smith Mountain
Industries has a strong growth track record, above Newell Brands’
core sales growth rate, and is expected to be immediately accretive
to Newell Brands’ normalized earnings. The business is an excellent
strategic fit with one of the company’s Win Bigger categories, Home
Fragrance, which includes the leading Yankee Candle® brand.
The company has also entered into a definitive agreement to sell
its Rubbermaid® consumer storage totes business to United
Solutions, a leading supplier of plastic products for the home and
office. In conjunction with the sale, the parties will enter into a
five-year licensing agreement for use of the Rubbermaid® brand
name. Financial terms of the agreement were not disclosed and are
not material. The Rubbermaid® consumer storage business represents
approximately $70 million in annual sales.
Additionally, the company is holding for sale its Pine Mountain®
fire starters, fire logs, and fire safety business, as well as its
Diamond® matches, fire starters, lighters, toothpicks, and laundry
business. These businesses collectively represent approximately $87
million in annual sales. Private label products and other
associated brands in these categories will be included in any sale.
Newell Brands will retain all other Diamond®-branded products, such
as plastic cutlery, as well as its First Alert® home safety
business.
As previously announced, sales processes are underway for a
number of other businesses including the company’s two winter
sports units, V�lkl® and K2®, and its Heaters, Humidifiers, and
Fans business. The company hopes to complete the divestiture of
these assets, as well as the Pine Mountain® and Diamond®
businesses, within the first half of 2017. In October 2016, the
company entered into a definitive agreement to sell its Tools
business, including the Irwin®, Lenox® and Hilmor® brands,
to Stanley Black & Decker for $1.95 billion.
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.
Caution Concerning 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 WoodWick acquisition, the
expected financial impact of the WoodWick acquisition and the
status and expected timing of its proposed divestitures. Actual
events may differ materially. Factors that may affect actual
results include, but are not limited to: the Company’s ability to
execute upon its portfolio management strategies, whether and when
required regulatory approvals will be obtained, whether and when
closing conditions will be satisfied, whether and when the Company
will be able to realize the expected financial results and
accretive effect of the WoodWick acquisition, how customers,
competitors, suppliers and employees will react to the acquisition,
and whether and when the Company’s proposed divestitures will sign
and close and the risks associated with strategic acquisitions and
divestitures. For other factors that could affect our business
please refer to those factors listed in our filings with the
Securities and Exchange Commission (including the information set
forth under the caption “Risk Factors” in the Company’s Annual
Report on Form 10-K).
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version on businesswire.com: http://www.businesswire.com/news/home/20170113005072/en/
Newell Brands Inc.InvestorsNancy O’Donnell, +1
770-418-7723Vice President, Investor
Relationsnancy.odonnell@newellco.comorMediaTom Sanford, +1 973-600-3880Vice
President, Global Communicationstom.sanford@newellco.comorWeber
ShandwickLiz Cohen, +1 212-445-8044liz.cohen@webershandwick.com
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