Newell Brands is exploring “strategic options” for several of its divisions that include Rubbermaid outdoor, closet and refuse and several other commercial product categories.
Company officials said executing these strategic options would result in a 50% reduction in its customer base and a 50% reduction in the company’s global factory and warehouse footprint. The end result would be a company with approximately $11 billion in net sales and $2 billion in EBITDA.
Michael Polk, Newell’s CEO, called the move a “significant acceleration” in the company’s transformation plan.
“We believe that exiting non-strategic assets, reducing complexity and focusing on our key consumer-focused brands will make us more effective at unlocking value and responding to the fast-changing retail environment,” he said.
Newell Brands intends to begin the evaluation process immediately and expects any resulting transactions to be completed by the end of 2019.
The decision to explore “strategic alternatives” comes at a time when the company said its core sales growth would grow approximately 0.8%, down from previous guidance of 1.5% to 2% growth, with earnings per share in the range of $2.72 to $2.76, below previous guidance of $2.80 to $2.85.
Company officials said inventory rebalancing of inventory and the bankruptcy of a leading baby retailer had a negative impact on company sales.