Newell Finds Private-Equity Buyers for Pure Fishing and Jostens
(Bloomberg) -- Newell Brands Inc., having made peace with its activist shareholders, announced another step in its efforts to slim down: definitive agreements to sell two businesses, Pure Fishing and Jostens. Shares rose in early trading.
- Platinum Equity will buy Jostens, known for its yearbooks and class rings, while Sycamore Partners will acquire tackle and reel company Pure Fishing. The two deals together will contribute about $2.5 billion of after-tax proceeds for the parent company that said in May the two divisions were on the auction block.
- Newell has been trying to simplify its business after it became too sprawling. In total, the company has said it aims to sell non-core businesses that made up about 35 percent of its net sales. Still, it remains to be seen whether a leaner company can recapture the interest of investors.
- The maker of Crock-Pot slow cookers and Sharpie pens earlier this year cut a deal to end a proxy fight with Starboard Value, the activist fund run by Jeff Smith.
- Newell shares rose as much as 4.3 percent to $20.80 in early trading. The stock has fallen 35 percent this year through Tuesday’s close.
- Read the statement from the company here.
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