Tuesday 13th December 2016 |
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Newell Brands has agreed to buy Sistema Plastics from its New Zealand owner for $660 million, one of two businesses the New York Stock Exchange-listed consumer products company is acquiring as it seeks faster-growing assets.
Hoboken, New Jersey-based Newell, whose brands range from Sharpie and Paper Mate pens to Crock-Pot slow cookers, Sunbeam home appliances and Rubbermaid storage products, has agreed to buy Sistema and home fragrance business Smith Mountain Industries, saying both businesses "are growing at rates well above Newell Brands' core growth rate and are expected to be immediately accretive to normalised earnings." The Smith purchase is for US$100 million.
It will buy Sistema from shareholders including founder and majority owner Brendan Lindsay. Sistema's website says he started the business in his garage 30 years ago.
Mark Tarchetti, president of Newell Brands, said Sistema was "one of the fastest-growing brands in the food storage category" with annual sales of about US$145 million. Sistema's food storage containers are currently sold in several major markets where's Newell's Rubbermaid products aren't currently available, "creating significant potential for geographic expansion".
Sistema has also been expanding into the beverages category, which has been an area strategic focus for Newell Brands and would soon complete a state-of-the-art manufacturing facility in New Zealand "that will enable Newell Brands to meet the capacity needs created by continued category growth".
Cameron Partners Rothschild advised Newell Brands on the acquisition of Sistema.
Newell shares rose 1.5 percent to US$46.23 and have gained 4.9 percent this year. The stock is rated a 'buy' based on the consensus of 16 analysts polled by Reuters.
BusinessDesk.co.nz
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