Newell Brands to Sell The Waddington Group to Novolex

On May 4, 2018

Hoboken-based Newell Brands Inc. has signed a definitive agreement to sell The Waddington Group, its global consumer and commercial package manufacturing business, to Novolex Holdings, LLC, a leading provider of paper and plastic packaging products backed by The Carlyle Group. 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 $2.3 billion, subject to customary working capital and transaction adjustments. Waddington’s 2017 net sales were $907 million. The company expects the transaction to result in after-tax proceeds of approximately $2.2 billion, which will be applied to deleveraging and share repurchase.

“We’re pleased with today’s announced sale of The Waddington Group to Novolex,” said Michael Polk, Newell Brands Chief Executive Officer. “This mutually beneficial deal allows the Waddington team to unlock its full potential under a new owner who is committed to the packaging category, and provides Newell Brands the opportunity to take an important first step forward in our Accelerated Transformation Plan.”

The transaction is expected to close within approximately 60 days, subject to customary closing conditions, including regulatory approval. J.P. Morgan Securities LLC acted as financial advisor to Newell Brands on the transaction.

To access more business news, visit njbmagazine.com

Related Articles: