Newell Brands (NYSE: NWL) has agreed to sell its Rubbermaid consumer storage totes business, which represents some $70 million in annual sales, to plastic products provider United Solutions. The deal includes a five-year licensing agreement for United Solutions to use the Rubbermaid brand name.
In addition, Newell plans to sell its Pine Mountain fire starters, fire logs, and fire safety business, as well as its Diamond matches, fire starters, lighters, toothpicks, and laundry business—altogether representing another $87 million in annual sales. However, it intends to keep other Diamond-branded products, including its plastic cutlery and First Alert home-safety business.
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The moves come as Newell undertakes a larger restructuring of its portfolio. But that hasn’t meant just selling off assets. Since the start of 2015, the company has made a handful of acquisitions, according to the PitchBook Platform. Recent deals include picking up Elmer’s for $600 million in October 2015 and agreeing to purchase the parent company of WoodWick Candles for $100 million in December.
Processes are already underway for a number of other businesses, including Newell’s’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 within the first half of this year. In October, Newell agreed to sell its tools business, comprising the Irwin, Lenox and Hilmor brands, to Stanley Black & Decker for $1.95 billion.
Newell stock has dropped about 14% since August, closing Friday’s trading session at $47 a share for a $22.79 billion market cap.
Article by Adam Putz, PitchBook