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HOBOKEN, N.J. — As part of its recently announced growth strategy, Newell Brands Inc. plans to sell its tool brands to Stanley Black & Decker in a $1.95 billion deal.
Newell said Wednesday that the agreement includes its Irwin, Lenox and Hilmor brands. The company is retaining its Dymo Industrial labeling business, which was reported within the tools segment.
Net sales for the divested business totaled about $760 million for the last 12 months. Newell said the transaction is expected to be completed in the first half of 2017, pending regulatory approvals and other customary closing conditions.
Last week, Newell unveiled a new corporate strategy — coming in the wake of its acquisition of Jarden Corp. — that involves changing from a holding company to an operating company and a consolidation from 32 business units to 16 operating divisions, including the creation of a new global, enterprisewide e-commerce division.
The company also is sharpening its focus on core brands by putting some businesses up for sale to help pay down debt and establish a platform for future acquisitions. Businesses on the selling block include Newell’s two winter sports units, Völkl and K2, within the Outdoor Solutions Segment; its heaters, humidifiers and fans business within the Consumer Solutions Segment; and the Rubbermaid consumer storage business within the Home Solutions segment.
“Newell Brands’ new strategic plan establishes a sharp set of portfolio choices and investment priorities that will focus resources on the businesses with the greatest potential for growth,” stated chief executive officer Michael Polk. “The actions we are taking will strengthen the underlying performance of the company and help unlock the unique opportunity for transformative value creation connected to the combination of Newell Rubbermaid and Jarden Corp. While our tools brands have been very good contributors to our results, we believe they will benefit from being part of Stanley Black & Decker, a global leader in the tools category.”
Including the tools brands sold to Stanley Black & Decker, the businesses earmarked for sale represent about 10% of Newell’s portfolio. The total 2015 net sales of the remaining businesses held for sale is about $700 million. Newell said sales processes are under way, and the company hopes to complete the divestiture of the remaining assets within the first half of 2017.
Newell’s roster of general merchandise brands include 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.
