Newell Brands Inc. (NYSE: NWL), Hoboken, NJ, has agreed to acquire two companies – New Zealand-based Sistema Plastics for NZ$660 million (US$470 million) and Smith Mountain Industries for $100 million.
Sistema, with annual sales of $145 million, is a provider of innovative food storage containers. Additionally, Sistema will soon complete a state-of-the-art manufacturing facility in New Zealand that will enable Newell Brands to meet the capacity needs created by continued category growth.
Smith Mountain, which does business primarily under the WoodWick Candle brand, is a provider of home fragrance products. Its WoodWick Candle brand had annual sales of $65 million.
Both businesses are growing at rates well above Newell Brands’ core sales growth rate and are expected to be immediately accretive to normalized earnings. 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.
