ATLANTA, July 21, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid (NYSE:NWL) has signed a definitive agreement to acquire Ignite Holdings, LLC ("Ignite") from North Castle Partners, a leading private equity firm focused on consumer businesses that promote healthy, active and sustainable living.
Ignite is a leading designer and marketer of durable beverage containers sold under the Contigo and Avex brands. Ignite is expected to deliver $125 million of net sales in 2014 and has a strong growth track record in the on-the-go thermal and hydration beverage containers market, achieving a historical four year sales CAGR of 35 percent. The purchase price is $308 million, subject to customary working capital adjustments. The acquisition is expected to be accretive to Newell Rubbermaid's growth rate, normalized operating income margin and normalized EPS in the first year. Newell Rubbermaid plans to reinvest a portion of Ignite's profitability to more aggressively build the Contigo and Avex brands.
Newell Rubbermaid President and CEO Michael Polk said, "Ignite has a great track record of growth, establishing a leading share position in two of the fastest growing consumer durable categories in North America. Their commitment to leverage great design to deliver differentiated products is evident in their results. The acquisition of Ignite marks the next step in the Growth Game Plan as we transform Newell Rubbermaid into a larger, faster growing, more global and more profitable company."
The acquired business will become part of the Home Solutions segment with Contigo and Avex joining the company's Rubbermaid®, Calphalon®, Goody® and Levolor® brands.
"Ignite's focus on design, product performance and constant innovation is a seamless fit with our Growth Game Plan strategy," said Mark Tarchetti, Chief Development Officer. "The Contigo brand has set the standard for the category and we are proud to make it part of our portfolio. This acquisition creates the opportunity to build a global beverage container business leveraging both the premium Contigo and mainstream Rubbermaid brands. We intend to invest behind the business to build on Ignite's current strong momentum, expanding product lines, channels of distribution and geographic footprint over time."
Sami El-Saden, CEO of Ignite, said "We are delighted to have found a long term strategic owner for the business who shares our pride in the achievements and strength of the company, but can bring a new level of investment and global perspective."
The acquisition is expected to be financed through a combination of organic cash flow and available borrowings and is expected to close by the end of the third quarter of 2014, subject to customary conditions and regulatory approvals. Robert W. Baird & Co. acted as financial advisor to Newell Rubbermaid on this transaction.
Additional information about the transaction is available under Events and Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
Ignite, a company with a passion for great products, is a global leader and recognized innovator in two of the fastest growing segments of the housewares industry: reusable, environmentally friendly thermal mugs and hydration bottles. Through its Contigo® and Avex® brands, Ignite has successfully created a diverse portfolio of innovative products that appeal to an extremely loyal and expanding consumer base. Ignite has a strong global presence and currently sells its products in over 50 countries across club, mass, sporting goods, specialty, direct-to-consumer, and exclusive strategic partnerships. Ignite is headquartered in Chicago, Il. For more information, visit www.gocontigo.com
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
This news release contains forward-looking information based on management's current views and assumptions. Actual events may differ materially. Factors that may affect actual results include, but are not limited to: whether and when the required regulatory approvals will be obtained, whether and when the closing conditions will be satisfied and whether and when the transaction will close, whether and when the Company will be able to realize the expected financial results and accretive effect of the transaction, and how customers, competitors, suppliers and employees will react to the transaction. Please refer to the cautionary statements set forth in the "Forward-Looking Statements" section of the Company's most recently filed Quarterly Report on Form 10-Q as well as the risk factors set forth in Exhibit 99.1 thereto, for other factors that could affect our business.
CONTACT: Nancy O'Donnell Vice President, Investor Relations +1 (770) 418-7723 David Doolittle Vice President, Global Communications +1 (770) 418-7519