Newell Brands Announces Agreement to Repurchase $275 Million of its Shares from Icahn Enterprises
February 22 2022 - 9:15AM
Business Wire
Newell Brands Inc. (NASDAQ: NWL) announced today that on
February 21, 2022, it entered into an agreement to repurchase
approximately $275 million of the company’s common shares
beneficially owned by Carl C. Icahn and certain of his affiliates
(“Icahn Enterprises”), at a purchase price of $25.86 per share, the
closing price of Newell Brands’ common shares on February 18, 2022,
the last trading day prior to the execution of the purchase
agreement. Newell Brands will utilize cash on hand and its existing
credit facility to fund the share repurchase.
The share repurchase is expected to close no later than February
25, 2022, subject to customary closing conditions, after which
Icahn Enterprises is expected to own approximately 33 million
common shares of Newell Brands, which represents approximately 8%
of the company’s outstanding shares.
This share repurchase will be made pursuant to the existing
authorization under the company’s $375 million share repurchase
program, associated with Newell Brands’ planned divestiture of the
Connected Home & Security business. At the time of the
announcement of this transaction, Newell Brands indicated that it
anticipates using the after-tax proceeds toward both debt paydown
and share repurchase, with the goal of maintaining the company’s
current leverage ratio. The company continues to expect this
divestiture to be completed by the end of the first quarter of
2022, subject to customary closing conditions, including regulatory
approval.
Ravi Saligram, Newell Brands President and CEO, said, “Today’s
announcement of the share buyback reflects our confidence in the
strategy we have been implementing, which is yielding strong
results, and is expected to create tremendous shareholder value. We
are thankful to Carl Icahn, Brett Icahn and their Board
representatives for their support and guidance over the past
several years and look forward to their continued contributions
going forward.”
Carl Icahn said, “I remain an avid supporter and believer in
Newell Brands’ management team and their strategy, which has
strengthened the company’s underlying performance and reignited
their top line momentum. I look forward to our continued
partnership, as I remain one of the company’s largest shareholders,
with approximately 33 million shares valued at $855 million.”
About Newell Brands
Newell Brands (NASDAQ: NWL) is a leading global consumer goods
company with a strong portfolio of well-known brands, including
Rubbermaid, FoodSaver, Calphalon, Sistema, Sharpie, Paper Mate,
Dymo, EXPO, Elmer’s, Yankee Candle, Graco, NUK, Rubbermaid
Commercial Products, Spontex, Coleman, Campingaz, Contigo, Oster,
Sunbeam and Mr. Coffee. Newell Brands' beloved, planet friendly
brands enhance and brighten consumers lives at home and outside by
creating moments of joy, building confidence and providing peace of
mind.
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 repurchase, the expected timing of the
repurchase and the anticipated use of proceeds and timing of the
Connected Home & Security business divestiture, and the
expected outcome of the company’s strategy. Actual events may
differ materially. Factors that may affect actual results include,
but are not limited to, our ability to complete the expected
repurchase on the anticipated timing or at all and our ability to
complete the Connected Home & Security business divestiture on
the anticipated timing or at all and whether and when the required
regulatory approvals for such divestiture will be obtained and
other closing conditions satisfied and other strategic operational
risks. 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/20220221005507/en/
Investors: Sofya Tsinis VP, Investor Relations +1 (201)
610-6901 sofya.tsinis@newellco.com
Media: Beth Stellato VP, Corporate Communications, Events
& Philanthropy +1 (470) 580-1086 beth.stellato@newellco.com
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