Newell Brands Inc. announced it plans to sell its tools business, including the Irwin, Lenox and Hilmor brands to Stanley Black & Decker for $1.95 billion, saying the decision was reached as part of a series of strategic changes. The transaction is expected to close in the first half of 2017.
“Newell Brands new strategic plan establishes a sharp set of portfolio choices and investment priorities that will focus resources on the businesses with the greatest potential for growth,” said Michael Polk, Newell Brands CEO. “The actions we are taking will strengthen the underlying performance of the company and help unlock the unique opportunity for transformative value creation connected to the combination of Newell Rubbermaid and Jarden Corporation.”
Polk said the decision was not made because of poor sales, as its tool brands “have been very good contributors to our results.” Net sales were $760 million for the last 12 months.
Newell Brands has also decided divest a number of other units including winter sports brands Völkl and K2, its heaters, humidifiers and fans business and the Rubbermaid consumer storage business. Net revenue in 2015 for all of the businesses for sale was approximately $700 million.
The company said it will retain its Dymo industrial labeling business, which is part of its tools segment.