Newell Rubbermaid to sell its hardware business
by August 10, 2013 11:41 am 129 views
Newell Rubbermaid Inc. said Friday, (Aug.9 it plans to divest its hardware business. signing an agreement to sell the division to Nova Capital.
The deal includes Amerock®, Ashland®, Bulldog® and ShurLine® brands and the transaction is expected to close within the third calendar quarter, subject to certain customary conditions.
The 2013 sales for the Newell Rubbermaid's hardware business are estimated to be approximately $255 million, according to the release.
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.
“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 President and CEO.
Newell Rubbermaid is a supplier to Wal-Mart Stores Inc. with a local sales office in Bentonville.