Newell Brands Announces Agreement to Sell Rawlings Sporting Goods Company, Inc. to Seidler Equity Partners
June 05 2018 - 8:00AM
Business Wire
Newell Brands Inc. (NYSE:NWL) announced today that it has signed
a definitive agreement to sell Rawlings Sporting Goods Company,
Inc. (“Rawlings”), a leading manufacturer and marketer of sporting
goods, to a fund managed by Seidler Equity Partners (“SEP”), a
private investment firm based in Marina del Rey, California. Major
League Baseball (“MLB”) will co-invest with SEP. Rawlings, founded
in 1887 and based in St. Louis, MO, comprises the Rawlings, Miken
and Worth brands.
The sale is part of Newell Brands’ previously announced
Accelerated Transformation Plan, designed to create a simpler,
faster, stronger portfolio of leading brands. Gross proceeds from
the divestiture are expected to be approximately $395 million,
subject to customary working capital and transaction adjustments.
Rawlings’ 2017 net sales were approximately $330 million. The
company expects the transaction to result in after-tax proceeds of
approximately $340 million, which will be applied to deleveraging
and share repurchase.
“We are pleased with the agreement to sell Rawlings at an
attractive multiple,” said Michael Polk, Newell Brands president
and chief executive officer. “Rawlings is an iconic brand and
Seidler Equity Partners, in partnership with Major League Baseball,
will identify new opportunities for this brand and for the
company’s employees. This transaction is a pivotal step in our
company’s transformation to become a more focused, forward-facing
consumer goods company with tremendous opportunities.”
Eric Kutsenda, an SEP founding partner, commented, “We are
delighted to partner with both MLB and the talented management team
at Rawlings, to build on the remarkable 131-year history of this
premier sports brand.”
Chris Marinak, MLB’s executive vice president for strategy,
technology & innovation, said, “MLB is excited to take an
ownership position in one of the most iconic brands in sports and
further build on the Rawlings legacy, which dates back to 1887. We
are particularly interested in providing even more input and
direction on the production of the Official Ball of Major League
Baseball, one of the most important on-field products to the play
of our great game.”
The transaction is expected to close within approximately 30 to
45 days, subject to customary closing conditions, including
regulatory approval. Morgan Stanley acted as financial advisor to
Newell Brands on the transaction. Bank of America Merrill Lynch
acted as financial adviser to SEP.
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.
About Seidler Equity
Partners
Seidler Equity Partners and its affiliates have been investing
in market-leading companies since 1992. SEP aligns with business
founders and management teams to achieve long-term growth and
preserve company stewardship. For more information, visit
www.SEPfunds.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, financial impact and timing of the
Rawlings transaction. 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 Rawlings
transaction will be obtained, whether and when the closing
conditions will be satisfied and whether and when the transaction
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/20180605005888/en/
Newell Brands Inc.Investors:Nancy O’DonnellSVP, Investor
Relations and
Communications+1-201-610-6857nancy.odonnell@newellco.comorMedia:Michael
SinatraDirector, External
Communications+1-201-610-6717michael.sinatra@newellco.com
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