Reaches Agreement to Sell Rubbermaid® Consumer Storage Totes Business
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, Völkl®
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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