Newell Brands (NYSE:NWL) made substantial progress on its
Accelerated Transformation Plan, designed to create a simpler,
faster, stronger consumer-focused portfolio of leading brands and
today announced that it has signed definitive agreements to sell
two businesses, Pure Fishing and Jostens. Combined, these
transactions are expected to contribute approximately $2.5 billion
of after-tax proceeds, subject to customary working capital and
other transaction adjustments, which will be deployed toward
deleveraging and share repurchase.
The company has signed a definitive agreement to sell Pure
Fishing to Sycamore Partners, a leading private equity firm
specializing in consumer, distribution and retail-related
investments. Pure Fishing is a leading global provider of fishing
tackle, lures, rods and reels with a portfolio of brands that
includes Abu Garcia®, All Star®, Berkley®, Chub®, Fenwick®, Greys®,
Hardy®, Hodgman®, Johnson™, JRC®, Mitchell®, Penn®, Pflueger®,
Sebile®, Shakespeare®, SpiderWire®, Stren®, and Ugly Stik®.
Gross proceeds from the Pure Fishing divestiture are anticipated
to be $1.3 billion, subject to customary working capital and
transaction adjustments. In 2017 net sales for Pure Fishing were
approximately $556 million.
Newell Brands also signed a definitive agreement to sell Jostens
to Platinum Equity, a leading private investment firm. Jostens,
based in Minneapolis, is a trusted partner in the academic and
achievement channel, providing products, programs and services that
help its customers celebrate moments that matter. The company's
products comprise yearbooks, publications, jewelry and consumer
goods that serve the K-12 educational, college and professional
sports segments.
Gross proceeds from the Jostens transaction are expected to be
approximately $1.3 billion, subject to customary working capital
and transaction adjustments. Jostens’ 2017 net sales were $768
million.
“We are pleased to announce another step forward in our
Accelerated Transformation Plan, with the signing of the Pure
Fishing and Jostens transactions,” said Michael Polk, Newell Brands
President and Chief Executive Officer. “We have full confidence
that these businesses will continue to thrive under new ownership,
as they leverage their strong positions in the market place.”
Both transactions are expected to close in the fourth quarter,
subject to customary closing conditions, including regulatory
approval. J.P. Morgan Securities LLC acted as financial advisor to
Newell Brands on the Pure Fishing transaction, while Jefferies LLC
acted as financial advisor to the company on the Jostens deal.
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®,
Marmot®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®, Graco®, Baby
Jogger®, NUK®, Calphalon®, Rubbermaid®, Contigo®, First Alert®, 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.
About Sycamore Partners
Sycamore Partners is a private equity firm based in New York.
The firm specializes in consumer, distribution and retail-related
investments and partners with management teams to improve the
operating profitability and strategic value of their business.
Sycamore has approximately $10 billion in assets under management.
The firm's investment portfolio currently includes Belk, Coldwater
Creek, CommerceHub, Hot Topic, MGF Sourcing, NBG Home, Staples,
Inc., Staples United States Retail, Staples Canada, Talbots, The
Limited and Torrid.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global
investment firm with approximately $13 billion of assets under
management and a portfolio of approximately 40 operating companies
that serve customers around the world. The firm is currently
investing from Platinum Equity Capital Partners IV, a $6.5 billion
global buyout fund, and Platinum Equity Small Cap Fund, a $1.5
billion buyout fund focused on investment opportunities in the
lower middle market. Platinum Equity specializes in mergers,
acquisitions and operations – a trademarked strategy it calls
M&A&O® – acquiring and operating companies in a broad range
of business markets, including manufacturing, distribution,
transportation and logistics, equipment rental, metals services,
media and entertainment, technology, telecommunications and other
industries. Over the past 23 years Platinum Equity has completed
more than 200 acquisitions.
Forward-Looking
Statements
This news release contains forward-looking information based on
management's current views and assumptions, including statements
regarding the expected benefits, financial impact and timing of the
Pure Fishing and Jostens transactions. Actual events may differ
materially. Factors that may affect actual results include, but are
not limited to, whether and when the required regulatory approvals
for the Pure Fishing and Jostens transactions will be obtained,
whether and when the closing conditions will be satisfied and
whether and when the transactions will close. Please refer to the
cautionary statements set forth in the "Forward-Looking Statements"
section and under the caption “Risk Factors” in Newell Brands’
Annual Report on Form 10-K for other factors that could affect our
business.
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version on businesswire.com: https://www.businesswire.com/news/home/20181107005496/en/
Newell Brands
Contacts:Investors:Nancy O’DonnellSVP, Investor
Relations and Communications(201)
610-6857nancy.odonnell@newellco.comMedia:Claire-Aude
StaraciDirector, External Communications(201)
610-6717claireaude.staraci@newellco.comSycamore Contacts:Michael Freitag or
Arielle RothsteinJoele Frank, Wilkinson Brimmer Katcher(212)
355-4449Platinum Equity
Contact:Dan Whelan(310)
282-9202dwhelan@platinumequity.com
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