Newell Brands Inc. announced that it has completed the sale of its Tools business, including the Irwin®, Lenox® and Hilmor® brands, to Stanley Black & Decker.
“The sale of the Tools business further strengthens our Newell Brands portfolio, enabling us to better allocate resources to the businesses with the greatest potential to win in the marketplace,” said Michael Polk, Chief Executive Officer, Newell Brands. “We are pleased that our employees will be joining the Stanley Black & Decker team, a company truly committed to the Tools category and we are confident that our Tools people and brands will thrive within Stanley Black & Decker’s leading global tools business.”
Gross proceeds from the transaction were approximately $1.95 billion, which includes the retention of accounts receivable. U.S.-based proceeds will be primarily used to pay down debt and accelerate the deleveraging of the company. Headquartered in Hoboken, Newell Brands continues to expect to achieve the stated leverage ratio goal of 3 to 3.5 times EBITDA in 2 to 3 years from the April 15, 2016 completion of the Jarden Corporation acquisition.