Newell Brands Announces Agreement to Sell Tools Brands to Stanley Black & Decker
Newell Brands Inc. (NYSE: NWL) announced today it has entered into a definitive agreement to sell its Tools business, including
the Irwin®, Lenox® and Hilmor® brands, to Stanley Black & Decker. This agreement has been reached in the context of a series of
strategic changes announced last week related to the company’s new corporate strategy.
“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,” said Michael Polk, Newell Brands Chief Executive Officer. “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 Corporation. 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."
Gross proceeds from the divestiture are expected to be $1.95 billion, which includes retained accounts receivable, subject to
customary working capital and transaction adjustments. Net sales for the divested business were approximately $760 million for the
last twelve months. The transaction is expected to close in the first half of 2017, subject to certain customary conditions,
including regulatory approvals. Proceeds will be primarily used to pay down debt in furtherance of the company’s stated goal of
achieving a leverage ratio of 3 to 3.5 times EBITDA by the end of 2018. If the transaction were to be completed on December 31,
2016, the company would expect normalized EPS dilution of approximately $0.15 on an annualized basis after the benefit of short
term cost actions and lower interest expense related to accelerated debt repayment. J.P. Morgan acted as financial advisor to
Newell Brands on the transaction.
As previously announced, as the result of a recently completed strategic review of its portfolio, Newell Brands has taken the
decision to hold a number of other businesses for sale including its 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 will retain its Dymo® Industrial labeling business within the
reported Tools segment. The total 2015 net sales of the remaining businesses held for sale is approximately $700 million. Sales
processes are underway and the company hopes to complete the divestiture of the remaining assets held for sale within the first
half of 2017.
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®. For hundreds of millions of consumers, Newell Brands makes life better 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.
Forward-Looking Statements
This news release contains forward-looking information based on management's current views and assumptions, including statements
regarding the expected benefits of the Tools transaction, the expected financial impact of the Tools transaction, the expected
timing of the Tools transaction, and the status and expected timing of its other proposed divestitures. Actual events may differ
materially. Factors that may affect actual results include, but are not limited to, our ability to execute upon our portfolio
management strategies, whether and when the required regulatory approvals for the Tools transaction will be obtained, whether and
when the closing conditions will be satisfied and whether and when the Tools transaction will close, the ability of Newell Brands
to execute on the results of its recently completed strategic review of its portfolio, whether and when Newell Brands’ proposed
divestitures will sign and close and the risks associated with strategic acquisitions and divestitures. Please refer to the
cautionary statements set forth in the "Forward-Looking Statements" section of the Company's most recently filed Quarterly Report
on Form 10-Q as well as other factors listed in our filings with the SEC (including the information set forth under the caption
“Risk Factors” in Newell Brands’ Annual Report on Form 10-K) for other factors that could affect our business.
Investor Contact:
Newell Brands Inc.
Nancy O’Donnell, +1-770-418-7723
Vice President, Investor Relations
nancy.odonnell@newellco.com
or
Media Contacts:
Newell Brands Inc.
Tom Sanford, +1-973-600-3880
Vice President, Global Communications
tom.sanford@newellco.com
or
Weber Shandwick
Liz Cohen, +1-212-445-8044
liz.cohen@webershandwick.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20161012005482/en/