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Newell Rubbermaid (NYSE:NWL) announced today that it has signed a definitive agreement to acquire the assets of bubba brands, inc., a wholly owned subsidiary of In Zone Holdings, Inc.
A leading designer and marketer of durable beverage containers, bubba is expected to deliver over $50 million of net sales in 2014. The acquisition will expand Newell Rubbermaid’s presence in on-the-go thermal and hydration beverageware, leveraging the company’s recent acquisition of the Contigo and Avex brands, and is expected to be accretive to Newell Rubbermaid’s net sales growth rate, normalized operating income margin and normalized EPS within the first year.
Newell Rubbermaid President and CEO Michael Polk said, “The acquisition of bubba further strengthens our position as a leader in one of the fastest-growing consumer durables categories in North America. We are excited to add this innovative brand to the portfolio. In combination with the Contigo, Avex and Rubbermaid® brands, the agreement to acquire bubba represents a tremendous opportunity to strengthen our growth agenda as we drive our Growth Game Plan strategy into action.”
The acquisition will be financed through organic cash flow and available borrowings and is expected to close this month, subject to customary closing conditions. Additional details will be provided during the company’s third quarter 2014 earnings call on October 31.
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2013 sales of $5.7 billion and a strong portfolio of leading brands, including Sharpie, Paper Mate, Rubbermaid Commercial Products, Irwin, Lenox, Parker, Waterman, Rubbermaid, Contigo, Levolor, Calphalon, Goody, Graco, Aprica and Dymo. As part of the company’s Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
