Newell Rubbermaid Inc. announced 15 March 2004 that it had reached a definitive agreement to sell its Burnes Picture Frame, Anchor Glass and Mirro Cookware units to an affiliate of private-investment …
Newell Rubbermaid Inc. announced 15 March 2004 that it had reached a definitive agreement to sell its Burnes Picture Frame, Anchor Glass and Mirro Cookware units to an affiliate of private-investment firm Cerberus Capital Management L.P. The transaction is consistent with the company“s intention to divest nonstrategic businesses and concentrate on leveraging brand strength and product innovation in its core portfolio of businesses. Closing of the transaction is subject to regulatory approval and certain other customary conditions. Specific financial terms were not disclosed, but Newell Rubbermaid said it expects gross proceeds of about USD 310 million. The company also will keep the accounts receivable of the businesses, which generated sales of about USD 695 million in 2003. Newell Rubbermaid, with brands that include Rubbermaid storage containers and Calphalon cookware, posted sales of USD 7.75 billion in 2003. Newell Rubbermaid said it expects the sale to dilute earnings by USD 0.11 to 13 a share in 2004. As a result, the company said it now expects earnings from continuing operations of USD 1.36 to USD 1.46 a share for the year, excluding any restruturing and other charges, down from a January 2004 forecast of USD 1.48 to USD 1.58 a share. On the same basis, Newell Rubbermaid said it expect earnings of USD 0.16 to 20 a share in the 1Q, in line with its previous guidance. Newell Rubbermaid has been divesting non-strategic product lines while focusing on its core businesses. In February 2004, the company completed the sale of its Panex Brazilian cookware division, several of its European picture frames businesses and its European Bulldog tool business. With the sale to Cerberus, “we have now completed the bulk of our portfolio transformation,” Newell Rubbermaid CEO Joseph Galli said.