As part of a business reorganization announced earlier this month, Hoboken-based Newell Brands Inc. is selling its tools business to Stanley Black & Decker, it announced Wednesday.The company said in a news release that it expects gross proceeds from the divestiture of the unit to be $1.95 billion. The business includes the Irwin, Lenox and Hilmor brands, it added.
“Newell Brands’ new strategic plan establishes a sharp set of portfolio choices and investment priorities that will focus resources on the businesses with the greatest potential for growth,” CEO Michael Polk said in a prepared statement. “The actions we are taking will strengthen the underlying performance of the company and help unlock the unique opportunity for transformative value creation connected to the combination of Newell Rubbermaid and Jarden Corporation.
“While our tools brands have been very good contributors to our results, we believe they will benefit from being part of Stanley Black & Decker, a global leader in the tools category.”
Earlier in October, Newell had said it was consolidating business units and selling off assets in the wake of the Newell Rubbermaid acquisition of Jarden. It had said it expects to use proceeds from the various sales to pay down debt, among other things.
Newell said the net sales for the divested business were approximately $760 million for the past 12 months. Net sales for the remaining businesses up for sale were about $700 million combined in 2015.
J.P. Morgan served as Newell’s financial adviser on the deal.