Newell Sells Rubbermaid Storage Business, Makes Progress with Portfolio Restructuring
The company has put the Pine Mountain and Diamond brands up for sale; has a deal in place to sell Irwin Tools to Stanley Black & Decker
Newell Brands Inc. (NYSE: NWL) has agreed to sell the Rubbermaid consumer storage business to United Solutions for an undisclosed amount, as part of the company’s strategy to focus on fast-growing brands. In addition, Newell has put the Pine Mountain fire logs and the Diamond matches businesses up for sale. Newell is in the process of selling 10 percent of its portfolio so it can focus on fast-growing business lines.
United Solutions makes plastic garbage cans, laundry baskets and food storage containers under the Organize Your Home, At Your Service, Rough & Rugged, ECO Sense, Pain Solutions and Organize Your Office brands. The Leominster, Massachussetts-based company has been licensing the Rubbermaid brand to make trash cans and will continue to do so under the deal agreement. The Rubbermaid storage business generates about $70 million in annual sales.
Newell says it will sell any private label products that are associated with Pine Mountain and Diamond that includes fire logs, fire starters, lighters and toothpicks. Those two businesses have a combined $87 million in annual sales. Hoboken, New Jersey-based Newell will hold on to the Diamond plastic cutlery and First Alert home safety product lines.
Newell has been busy buying and selling as part of its Growth Game Plan strategy in order to focus on core businesses. The company completed the $100 million acquisition of candle producer Smith Mountain Industries and has a deal in place to sell Irwin tools to Stanley Black & Decker Inc.(NYSE: SWK) for $1.95 billion. Newell launched the Growth Game Plan in 2012 to create a “larger, faster growing, more global and more profitable company." For example, in 2015, Elmer’s was added to the writing division, which houses the Sharpie brand. In 2016, the company completed the $15 billion purchase of Yankee Candle owner Jarden.
Newell is also in the process of selling the Volkl and K2 winter sports units, along with its heaters, humidifiers and fans divisions. Newell won Mergers & Acquisitions’ 2015 M&A Mid-Market Award for Strategic Buyer of the Year.
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