Newell Rubbermaid To Buy Elmer's For $600 Million
Newell Rubbermaid Inc. said it was buying Elmer's Products Inc. for $600 million from investment management company Berwind Corp. Elmer's, which brands include Krazy Glue, Elmer's and X-Acto, is expected to have 2015 sales of $240 million. The deal is expected to close by the end of 2015, and add to earnings and margin in 2016. Separately, Newell said it plans to divest its Decor window coverings business, which includes the Levolor and Kirsch brands. The consumer products company, which brands already include Paper Mate, Sharpie and Mr. Sketch, affirmed its 2015 earnings-per-share outlook of $2.14 to $2.20, and core sales growth forecast of 4% to 5%. The stock, which was inactive in premarket trade, has climbed 6.6% year to date, while the S&P 500 has lost 5.2%.
Copyright © 2015 MarketWatch, Inc.