Newell Brands announced Friday as part of its Accelerated Transformation Plan that the brands under the Pure Fishing umbrella are likely to be divested as the behemoth consumer products company looks to shed expenses and remake its attractiveness to shareholders.
Pure Fishing and its 14 brands, including Berkley, Abu Garcia, was included as part of Newell’s purchase of Jarden in 2015.
According to a press release outlining Newell’s plans, Pure Fishing is mentioned as part of Newell’s intention to divest “non-core businesses”, which represent nearly 35 percent of the company’s net sales. Other brands slated to be sold include Jostens, Rubbermaid Commercial Products, Mapa/Spontex/Quickie, The Waddington Group, Process Solutions, Rawlings, Goody, Rubbermaid Outdoor/Closet/Refuse & Garage and U.S. Playing Cards.
“Our actions to focus the portfolio and create a global consumer goods company with net sales of greater than $9 billion will create significant value for shareholders through the strengthening of our operating performance and financial flexibility and the return of capital to shareholders from divestiture proceeds,” Newell Brands Chief Executive Officer Michael Polk said in the release. “We are acting decisively to make Newell Brands a simpler, stronger and faster company, best positioned to leverage our competitively advantaged capabilities in innovation, design and e-commerce.”
If successful, the transformation plan will see Newell reduce its manufacturing facility base by 66 percent and it employee count by 39 percent.
Now, questions will arise over Pure Fishing’s future. Will the brands be sold altogether or split up to maximize Newell’s return? How soon can deals be consummated? Stay tuned.
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