Newell Brands (NYSE:NWL) made substantial progress on its Accelerated
Transformation Plan, designed to create a simpler, faster, stronger
consumer-focused portfolio of leading brands and today announced that it
has signed definitive agreements to sell two businesses, Pure Fishing
and Jostens. Combined, these transactions are expected to contribute
approximately $2.5 billion of after-tax proceeds, subject to customary
working capital and other transaction adjustments, which will be
deployed toward deleveraging and share repurchase.
The company has signed a definitive agreement to sell Pure Fishing to
Sycamore Partners, a leading private equity firm specializing in
consumer, distribution and retail-related investments. Pure Fishing is a
leading global provider of fishing tackle, lures, rods and reels with a
portfolio of brands that includes Abu Garcia®, All Star®, Berkley®,
Chub®, Fenwick®, Greys®, Hardy®, Hodgman®, Johnson™, JRC®, Mitchell®,
Penn®, Pflueger®, Sebile®, Shakespeare®, SpiderWire®, Stren®, and Ugly
Gross proceeds from the Pure Fishing divestiture are anticipated to be
$1.3 billion, subject to customary working capital and transaction
adjustments. In 2017 net sales for Pure Fishing were approximately $556
Newell Brands also signed a definitive agreement to sell Jostens to
Platinum Equity, a leading private investment firm. Jostens, based in
Minneapolis, is a trusted partner in the academic and achievement
channel, providing products, programs and services that help its
customers celebrate moments that matter. The company's products comprise
yearbooks, publications, jewelry and consumer goods that serve the K-12
educational, college and professional sports segments.
Gross proceeds from the Jostens transaction are expected to be
approximately $1.3 billion, subject to customary working capital and
transaction adjustments. Jostens’ 2017 net sales were $768 million.
“We are pleased to announce another step forward in our Accelerated
Transformation Plan, with the signing of the Pure Fishing and Jostens
transactions,” said Michael Polk, Newell Brands President and Chief
Executive Officer. “We have full confidence that these businesses will
continue to thrive under new ownership, as they leverage their strong
positions in the market place.”
Both transactions are expected to close in the fourth quarter, subject
to customary closing conditions, including regulatory approval. J.P.
Morgan Securities LLC acted as financial advisor to Newell Brands on the
Pure Fishing transaction, while Jefferies LLC acted as financial advisor
to the company on the Jostens deal.
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®, Marmot®, Oster®,
Sunbeam®, FoodSaver®, Mr. Coffee®, Graco®, Baby Jogger®, NUK®,
Calphalon®, Rubbermaid®, Contigo®, First Alert®, 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.
About Sycamore Partners
Sycamore Partners is a private equity firm based in New York. The firm
specializes in consumer, distribution and retail-related investments and
partners with management teams to improve the operating profitability
and strategic value of their business. Sycamore has approximately $10
billion in assets under management. The firm's investment portfolio
currently includes Belk, Coldwater Creek, CommerceHub, Hot Topic, MGF
Sourcing, NBG Home, Staples, Inc., Staples United States Retail, Staples
Canada, Talbots, The Limited and Torrid.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment
firm with approximately $13 billion of assets under management and a
portfolio of approximately 40 operating companies that serve customers
around the world. The firm is currently investing from Platinum Equity
Capital Partners IV, a $6.5 billion global buyout fund, and Platinum
Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment
opportunities in the lower middle market. Platinum Equity specializes in
mergers, acquisitions and operations – a trademarked strategy it calls
M&A&O® – acquiring and operating companies in a broad range of business
markets, including manufacturing, distribution, transportation and
logistics, equipment rental, metals services, media and entertainment,
technology, telecommunications and other industries. Over the past 23
years Platinum Equity has completed more than 200 acquisitions.
This news release contains forward-looking information based on
management's current views and assumptions, including statements
regarding the expected benefits, financial impact and timing of the Pure
Fishing and Jostens transactions. Actual events may differ materially.
Factors that may affect actual results include, but are not limited to,
whether and when the required regulatory approvals for the Pure Fishing
and Jostens transactions will be obtained, whether and when the closing
conditions will be satisfied and whether and when the transactions will
close. Please refer to the cautionary statements set forth in the
"Forward-Looking Statements" section and under the caption “Risk
Factors” in Newell Brands’ Annual Report on Form 10-K for other factors
that could affect our business.
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