Newell Brands on Wednesday announced it has signed definitive agreements to sell Pure Fishing to the private equity firm Sycamore Partners for $1.3 billion.
The company also said it will sell Jostens to Platinum Equity, a leading private investment firm, also for $1.3 billion.
Combined, these transactions are expected to contribute approximately $2.5 billion of after-tax proceeds, subject to customary working capital and other transaction adjustments, which will be deployed toward deleveraging and share repurchase.
Sycamore Partners is a private equity firm specializing in consumer, distribution and retail-related investments. Pure Fishing is a leading global provider of fishing tackle, lures, rods and reels with a portfolio of brands that includes Abu Garcia, All Star, Berkley, Chub, Fenwick, Greys, Hardy, Hodgman, Johnson, JRC, Mitchell, Penn, Pflueger, Sebile, Shakespeare, SpiderWire, Stren, and Ugly Stik.
Gross proceeds from the Pure Fishing divestiture are anticipated to be $1.3 billion, subject to customary working capital and transaction adjustments. In 2017 net sales for Pure Fishing were approximately $556 million.
“We are pleased to announce another step forward in our Accelerated Transformation Plan, with the signing of the Pure Fishing and Jostens transactions,” said Michael Polk, Newell Brands president and CEO. “We have full confidence that these businesses will continue to thrive under new ownership, as they leverage their strong positions in the market place.”
Both transactions are expected to close in the fourth quarter, subject to customary closing conditions, including regulatory approval. J.P. Morgan Securities LLC acted as financial advisor to Newell Brands on the Pure Fishing transaction, while Jefferies LLC acted as financial advisor to the company on the Jostens deal.