After Jarden Deal, Newell CEO to Focus on Costs, Struggling Brands

Jarden Corp. and Newell Rubbermaid Inc. shareholders on Friday signed off on a $15 billion merger of the two companies. Now executives at the newly formed Newell Brands will get to work cutting costs and possibly pruning some of the dozens of well-known brands.

Michael Polk, who led Newell and will stay on as CEO of the combined company, said in an interview he plans to present the company's board with a plan in August to deal with struggling units, either through further investments, reorganization or by selling them off.

The deal, struck in December, creates a company with $16 billion in annual revenue that that combines names like Newell's Sharpie markers and Baby Jogger strollers with Jarden's Rawlings baseball gloves and Mr. Coffee machines.

Mr. Polk declined to name brands on his fix-it list but said they include one or two larger units.

"Every year, you have to attack the 15% of the portfolio that is on the bottom of the ladder. You are always going to have that," he said.

"We will look at this, we will unpack it, it will be fun."

The majority of savings from the combined company will come from cutting out redundant expenses and leveraging the company's new scale.

Newell said it expects roughly $500 million in annualized cost savings from the deal over four years, particularly in the areas of distribution and transportation. The savings come in addition to a

$300 million cost-cutting plan already underway ay Newell.

The deal will also immediately add to earnings, the company said.

Newell last year reported $378 million in net income, while Jarden reported $243 million in profit.

Write to Sharon Terlep at [e-mail]

(END) Dow Jones Newswires

April 15, 2016 10:35 ET (14:35 GMT)

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