Newell Brands (NYSE:NWL) acquired Sistema Plastics for $460M, funded by cash on hand and the acquisition is expected to be immediately accretive to normalized earnings.
“We are delighted to welcome the Sistema team to Newell Brands,” said Michael Polk, Chief Executive Officer, Newell Brands. “The inclusion of the Sistema brand to our current portfolio of food storage and preservation brands, including Rubbermaid food storage, FoodSaver vacuum seal food preservation system and Ball canning and crafting jars, significantly extends our geographic footprint and strengthens our leadership position in this on-trend, growing global category."
The company also completed the sale of the Rubbermaid consumer storage business to United Solutions and the signing of a definitive agreement to sell its small central European Teutonia baby stroller business to a private investor. Financial terms of both agreements were not disclosed.
Other previously announced divestitures are proceeding in line with expectations.
Net proceeds from completed and pending divestitures will be primarily used to pay down debt and accelerate deleveraging of the company to the previously communicated leverage ratio target of 3 to 3.5 times.