Nova Capital Management Ltd., an acquirer of corporate and private equity portfolios, has agreed to buy a suite of hardware businesses owned by Newell Rubbermaid Inc. (NYSE: NWL) for $214 million. The deal includes five home improvement and hardware brands: Amerock, Ashland, Bulldog, Drapery Hardware and Shur-Line.
Newell, which owns many well-known brands including Caphalon, Graco, Lenox, Paper Mate, Sharpie and Rubbermaid, put the hardware division up for sale in May, as part of a restructuring plan to boost profitability.
“When we announced our intention to sell the businesses, our goal was to find a strategic acquirer that is committed to investing in our brands and growing the businesses, creating opportunities to expand distribution, manufacturing and sourcing. We believe we have found in Nova a partner with the right depth of operational and financial expertise to help continue building our brands,” says Nick Morrisroe, general manager, hardware, who will continue to lead the combined businesses.
The brands “are well-positioned to grow their respective share and performance based on a history of superior product quality, service and innovation, in combination with long term partnerships in retail, OEM and two-step distribution channels,” says Nova investment partner David Jacobs, who will join the boards of the businesses. “In addition to their strong foundational attributes, these businesses should also benefit from the upturns in the U.S. housing, home improvement and consumer markets.”
The deal provides the latest example of Nova’s approach to delivering corporations and private sellers a buyer for the sale of multiple non-core assets in a single transaction, says Jacobs.
Founded in 2002, London-based Nova opened North American headquarters in Chicago in January.
In September 2012, Nova closed the purchase of five industrial businesses in the U.S. - all of the operating subsidiaries of Latshaw Enterprises, Inc. - in a single transaction. In August 2011, Nova completed the acquisition of five industrial businesses in Canada.
M&A in the hardware sector is heating up. Earlier in August, Littlejohn & Co. LLC closed the purchase of Handy Hardware Wholesale Inc. as part of a recapitalization deal.