Newell Brands Inc. (NYSE:NWL) CEO Michael Polk said costs savings from its merger with Jarden Corp. are on pace to come in toward the high end of its $50 million to $80 million it forecast for 2016.
In a presentation at the Barclay’s Global Consumer Staples Conference, Polk said Newell Brands is on track to end the year with synergy savings running at about $175 million annually.
Newell Rubbermaid Inc. acquired Jarden Corp. April 15 to create a consumer goods company with $16 billion in annual sales, including $2.74 billion from Jarden Outdoor Solutions segment, which owns Coleman, K2 Sports, Marmot, Rawlings, Berkley and dozens of other sporting goods brands.
While affirming sales and earnings guidance for 2016, the company now expects to achieve $500 million in cost synergies from the merger by early 2019, or approximately three years after completing the deal, compared with the three to four-year time horizon originally forecast.
Newell’s board has approved a new strategy that prioritizing brands and geographies around the greatest growth potential.
The company continues to work on divesting businesses that generate $250 million to $300 million a year and expects operating cash flow to improve $500 million to $6.0 billion by 2018.
