Hoboken-based Newell Brands Inc. said Tuesday that it will be restructuring its businesses and adjusting its investment priorities in the wake of a comprehensive strategic review following the Newell Rubbermaid acquisition of Jarden.The consumer goods company said in a news release that it is transforming from a holding company to an operating company and consolidating its 32 separate business units into 16 operating divisions. The change will include creation of a new global enterprise-wide e-commerce division, the company added.
Newell said it is also focusing its portfolio by putting a number of its businesses up for sale, and utilizing the subsequent proceeds to accelerate debt paydown, among other things.
“Newell Brands’ new strategic plan establishes a clear set of investment priorities, a new organizational design for the company and a sharp set of portfolio choices that will focus our resources on the businesses with the greatest potential for growth and value creation,” CEO Michael Polk said in a prepared statement. “We will drive growth acceleration over time through more effective and scaled commercial operations, increased investment in our brands and capabilities, and the delivery of bigger, better innovation across a broader set of categories. We will simultaneously expand margins through significant cost synergies and other savings related to the combination of Newell Rubbermaid and Jarden, and other cost-focused initiatives.”
The businesses up for sale represent about 10 percent of the company’s current portfolio, including most of the tools segment; the winter sports businesses within the outdoor solutions segment; the heaters, humidifiers and fans businesses within the consumer solutions segment; and the consumer storage container business within the home solutions segment, the company said.
“The combination of Newell Rubbermaid and Jarden has created a unique platform for transformative value creation, and the actions we are taking to reshape the company will unlock this opportunity, bringing greater investment and growth to our highest-potential categories,” President Mark Tarchetti said in a statement. “… The choices we are making will strengthen the underlying growth and performance of our most strategic businesses and, over time, enable us to scale our core categories through external development.”
The units put on the market represent about $1.5 billion in 2015 net sales, Newell added.
The company hopes to divest the assets within the first half of 2017.