Newell to sell home improvement business to Nova Capital
Aug 9 (Reuters) - Newell Rubbermaid Inc said Friday that it planned to sell its home improvement and hardware business to Nova Capital for $214 million, the latest step by the company to narrow its focus to certain units.
The brands Newell is selling to Nova, which buys corporate and private equity portfolios, include Amerock, Ashland, Bulldog and Shur-Line. The deal should close by the end of September, subject to certain customary conditions, Newell said.
Newell estimated the unit's 2013 sales at about $255 million.
The company had said in May that it wanted to sell the hardware unit as well as its teaching aids business to focus more on products for contractors and on emerging markets . It sold the teaching aids business in July to private equity firm Skyview Capital LLC for an undisclosed price.
Newell said it expected gross proceeds of $214 million from the hardware unit sale, including the retention of accounts receivable, and after-tax cash proceeds of about $175 million.
Nova said Newell's Nick Morrisroe would continue as the vice president and general manager of the business.
Rothschild was Newell's financial advisor on the deal.
Shares of Atlanta-based Newell, known for products such as Rubbermaid storage containers and Sharpie markers, slipped 1 percent to $26.54 in morning trading.