Newell Brands to sell U.S. Rubbermaid consumer storage totes business
The company has completed its acquisition of Smith Mountain Industries, a leading provider of premium home fragrance products, sold primarily under the WoodWick Candle brand, for $100 million, subject to customary working capital adjustments.
Smith Mountain Industries has a strong growth track record, above Newell Brands’ core sales growth rate, and is expected to be immediately accretive to Newell Brands’ normalized earnings.
The business is an excellent strategic fit with one of the company’s Win Bigger categories, Home Fragrance, which includes the leading Yankee Candle brand.
The company has also entered into a definitive agreement to sell its Rubbermaid consumer storage totes business to United Solutions, a leading supplier of plastic products for the home and office.
In conjunction with the sale, the parties will enter into a five-year licensing agreement for use of the Rubbermaid brand name.
Financial terms of the agreement were not disclosed and are not material. The Rubbermaid consumer storage business represents approximately $70 million in annual sales. ■