Newell Brands to sell The Waddington Group to Novolex for about $2.3B
Newell Brands (NWL) announced that it has signed a definitive agreement to sell The Waddington Group, its global consumer and commercial package manufacturing business, to Novolex Holdings, a leading provider of paper and plastic packaging products backed by The Carlyle Group (CG).
The Waddington Group, based in Covington, KY, comprises a global brand portfolio including Eco-Products, the leader in the green packaging space; POLAR PAK containers, serving ware, drink-ware and cutlery; WNA upscale disposable plastic products; and other industry-leading brands.
The sale is part of Newell Brands’ previously announced Accelerated Transformation strategy, designed to create a simpler, faster, stronger consumer-focused portfolio of leading brands.
Gross proceeds from the divestiture are expected to be approximately $2.3B, subject to customary working capital and transaction adjustments. Waddington’s 2017 net sales were $907M.
The company expects the transaction to result in after-tax proceeds of approximately $2.2N, which will be applied to deleveraging and share repurchase.
The transaction is expected to close within approximately 60 days, subject to customary closing conditions, including regulatory approval. J.P. Morgan Securities acted as financial advisor to Newell Brands on the transaction.
NWL closed at $26.69
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