Newell Brands has entered into a definitive agreement to acquire New Zealand-based food storage container company Sistema Plastics, for $470 million.
Additionally, the company has entered into a definitive agreement to acquire home fragrance product provider Smith Mountain Industries, for $100 million. Smith Mountain has provided candles primarily under the WoodWick Candle brand.
“These two bolt-on acquisitions strengthen our leadership positions in food storage, beverage and home fragrance,” said Michael Polk, Newell Brands CEO. “We will apply our advantaged Newell Brands’ capabilities and scale to further both businesses’ already strong performance.”
“We have a proven track record of accelerating the growth of businesses that we acquire in our core categories,” added Mark Tarchetti, president, Newell Brands. “Sistema and WoodWick are both design and innovation driven brands that are already generating very strong top-line growth and highly attractive margins. We look forward to integrating these brands into our portfolio as we continue to reshape our company to deliver transformative value creation.”
Sistema has annual sales of approximately $145 million. Its food storage products are available worldwide, including in several markets where Newell Brands’ Rubbermaid food storage products are not currently available, creating significant potential for geographic expansion, according to Newell.
Sistema has also been expanding into the beverage category. Additionally, Sistema will soon complete a manufacturing facility in New Zealand that will enable Newell to meet the capacity needs created by continued category growth, the company said.
WoodWick Candle is a fast-growing brand in the home fragrance category, with annual sales of approximately $65 million, according to the company. WoodWick’s candles offer a strong strategic fit with Newell Brands’ current home fragrance portfolio, which includes the Yankee Candle brand.
The Sistema transaction is expected to close in the second quarter of 2017, while the WoodWick Candle transaction is expected to close in the first quarter of 2017.