agreed to acquire Dymo, a designer of labeling products based in Stamford, Conn., for about $730 million in cash.
The acquisition should close by the end of the year. Atlanta-based Newell Rubbermaid said Friday it expects the acquisition to be neutral to earnings in 2005 and add around 6 cents a share to earnings in 2006. Dymo is a division of Esselte Group Holdings of Sweden.
Dymo product lines include LabelWriter, LabelManager, LetraTAG and RhinoPro. The company had net sales of roughly $225 million in 2004. Newell Rubbermaid's office products group accounted for $1.7 billion of the company's $6.5 billion in sales in 2004.
On Thursday, Newell Rubbermaid, whose product lines include Sharpie markers and Calphalon kitchenware, posted second-quarter sales of $1.64 billion, down 1.6% from a year ago.
Shares of Newell Rubbermaid were down 36 cents to $24.85.