HOBOKEN, N.J.--(BUSINESS WIRE)--Newell Brands Inc. (NYSE:NWL) announced today that it has made progress on its previously communicated plans to strengthen and focus its portfolio. The company announced progress in three areas including the completion of the acquisition of Sistema Plastics, a leading New Zealand based manufacturer and marketer of innovative food storage containers with strong market shares and presence in Australia, New Zealand, U.K. and parts of continental Europe.
“We are delighted to welcome the Sistema team to Newell Brands,” said Michael Polk, Chief Executive Officer, Newell Brands. “The inclusion of the Sistema brand to our current portfolio of food storage and preservation brands, including Rubbermaid food storage, FoodSaver vacuum seal food preservation system and Ball canning and crafting jars, significantly extends our geographic footprint and strengthens our leadership position in this on-trend, growing global category."
Sistema Plastics is one of the fastest-growing brands in the Food Storage market, with annual sales of approximately $145 million. The purchase price was NZ$660 million (US$460 million) and the acquisition is expected to be immediately accretive to normalized earnings. The Sistema acquisition was funded by cash on hand.
The company also announced today the completion of the sale of the Rubbermaid consumer storage business to United Solutions and the signing of a definitive agreement to sell its small central European Teutonia baby stroller business to a private investor. The terms of the Rubbermaid consumer storage containers business acquisition by United Solutions includes a five-year license for the use of the Rubbermaid brand name in this category. The Rubbermaid consumer storage business represents less than 5 percent of total Rubbermaid brand sales. Newell Brands will retain all other Rubbermaid-branded products. Financial terms of both agreements were not disclosed.
Other previously announced divestitures are proceeding in line with expectations. Net proceeds from completed and pending divestitures will be primarily used to pay down debt and accelerate deleveraging of the company to the previously communicated leverage ratio target of 3 to 3.5 times.
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®. Newell Brands makes life better for hundreds of millions of consumers 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.
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