focused on consumer businesses that promotes healthy, active and sustainable living.
Ignite is a leading designer and marketer of durable beverage containers sold under the Contigo and Avex brands. Ignite is expected to deliver $125 million of net sales in 2014 and has a strong growth
track record in the on-the-go thermal and hydration beverage containers market.
The purchase price is $308 million, subject to customary working capital adjustments. The acquisition is expected to be beneficial to Newell Rubbermaid’s growth rate, normalized operating income margin and normalized earnings per share in the first year. Newell Rubbermaid plans to reinvest a
portion of Ignite’s profitability to aggressively build the Contigo and Avex brands.
“Ignite has a great track record of growth, establishing a leading share position in two of the fastest growing consumer durable categories in North America,” said Michael Polk, president and CEO of Newell Rubbermaid. “Their commitment to leverage great design to deliver differentiated products is evident in their results. The acquisition of Ignite marks the next step in the growth game plan as we transform Newell Rubbermaid into a larger, faster-growing, more global and more profitable company.”
The acquired business will become part of the Home Solutions segment with Contigo and Avex joining the company’s Rubbermaid, Calphalon, Goody and Levolor brands.
The acquisition is expected to be financed through a combination of organic cash flow and available borrowings and is expected to close by the end of the third quarter of 2014, subject to customary conditions and regulatory approvals. Robert W. Baird & Co. acted as financial advisor to Newell Rubbermaid on this transaction.