Newell Rubbermaid Inc. (NYSE: NWL) today announced it has entered into a definitive agreement to sell its Hardware business, which includes the Amerock®, Ashland®, Bulldog® and Shur-Line® brands, to Nova Capital, a specialist acquirer of corporate and private equity portfolios. The transaction is expected to close within the third calendar quarter, subject to certain customary conditions.
2013 sales for the Hardware business are estimated to be approximately $255 million. Gross proceeds from the transaction are expected to be $214 million, which includes the retention of accounts receivable. The company anticipates after-tax cash proceeds of approximately $175 million. Rothschild acted as financial advisor to Newell Rubbermaid on this transaction.
“The successful sale of our Hardware business will leave us with a focused, cohesive portfolio of brands in five core business segments, each of which have significant potential to grow through innovation, brand development and selective emerging market expansion. That’s the Growth Game Plan in action,” said Michael Polk, Newell Rubbermaid’s President and Chief Executive Officer.
About Newell RubbermaidNewell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company’s Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance. This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com. Forward-Looking and Cautionary Statements This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that reflect management’s current views and estimates regarding future market conditions, company performance and financial results, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as ‘anticipate,” “believe,” “assume,” “estimate,” “expect,” “intend,” “project,” ”guidance,” “plan,” “outlook,” and other words and terms of similar meaning. Factors that could cause such differences include: the parties’ ability to satisfy the conditions and terms of the transaction, and to execute the transaction in the estimated time frame, if at all; assumptions regarding the anticipated proceeds resulting from the transaction; and other risks and uncertainties including those detailed from time to time in the company’s periodic reports (whether under the caption Risk Factors or Forward-looking Statements or elsewhere). The company assumes no obligations to revise or update any forward-looking statement, except as otherwise required by law.