Newell Rubbermaid to acquire beverage container brands
July 21, 2014-- Home Textiles Today,
Atlanta – Newell Rubbermaid signed an agreement to acquire Ignite Holdings, designer and marketer of beverage containers sold under the Contigo and Avex brands, the company’s first significant acquisition since 2008.
Ignite was purchased from North Castle Partners, a private equity firm, for $308 million. The acquisition is expected to deliver $125 million of net sales in 2014 and has a strong growth track record in the on-the-go thermal and hydration beverage containers market.
The acquisition is expected to be accretive to Newell Rubbermaid's growth rate, normalized operating income margin and normalized EPS in the first year. Newell Rubbermaid plans to reinvest a portion of Ignite's profitability to more aggressively build the Contigo and Avex brands.
"Ignite has a great track record of growth, establishing a leading share position in two of the fastest growing consumer durable categories in North America. Their commitment to leverage great design to deliver differentiated products is evident in their results,” said Michael Polk, Newell Rubbermaid president and ceo. “The acquisition of Ignite marks the next step in our growth game plan as we transform Newell Rubbermaid into a larger, faster growing, more global and more profitable company."
The acquired business will become part of the Home Solutions segment with Contigo and Avex joining the company's Rubbermaid, Calphalon, Goody and Levolor brands. The acquisition is expected to be financed through a combination of organic cash flow and available borrowings and is expected to close by the end of the third quarter of 2014.
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