Newell to sell packaging business Waddington to Carlyle unit for US$2.3 bn

Newell to sell packaging business

US-based marketer of consumer and commercial products Newell Brands is to sell its packaging business, Waddington Group, to Novolex Holdings, a provider of paper and plastic packaging products backed by the Carlyle Group, for US$2.3 billion.

The sale is in line with Newell’s divesture plans aimed at streamlining its operations and cutting costs, and eliminating a third of its sales. Proceeds from Waddington is a part of the roughly US$10 billion in divestitures that Newell has outlined, ratcheting it up from its previous estimate of US$6 billion. the company has said it is particularly focused on shedding some of its more industrial and commercial brands.

Waddington Group, based in Covington, KY, comprises a global brand portfolio including Eco-Products, which is involved the green packaging space; Polar Pak containers, serving ware, drink-ware and cutlery; WNA upscale disposable plastic products; and other brands. Waddington’s 2017 net sales were US$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.

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.

Newell said its divestiture process was "well underway" and expects to complete all transactions by the end of 2019 and become a company with net sales of about US$9.5 billion in 2020.


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