Newell Brands has signed an agreement to sell its winter sports businesses to Kohlberg & Company for $240 million. The sale of these businesses follows Newell’s acquisition in April 2016 of Jarden Brands. At that time Newell indicated that it would sell assets representing about $1.5 billion in revenue to simplify and strengthen its portfolio.
The winter sports businesses (WSB) is comprised of Völkl skis, K2 skis, Marker bindings, Dalbello boots, Madshus cross country skis, Line skis and accessories, Full Tilt boots, Atlas gloves, Tubbs snowshoes, Ride Snowboards and BCA outdoor safety equipment.
Net sales for the WSB were approximately $330 million during 2016 and annual adjusted EBITDA is approximately $25 million. The resulting enterprise valuation multiple is 9.6x.
Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company was founded in 1987 and is based north of New York City in Mt. Kisco, NY (www.kohlberg.com).
Newell Brands (NYSE: NWL) is a global consumer goods company with a large portfolio of well-known brands, including Paper Mate, Sharpie, Parker, Elmer’s, Coleman, Jostens, Rawlings, Oster, Sunbeam, Mr. Coffee, Baby Jogger, Calphalon, and Rubbermaid among many others. The company is based in Hoboken, NJ (www.newellbrands.com).
Goldman Sachs was the financial advisor to Newell Brands on the transaction.
The sale of WSB to Kohlberg is expected to close late in the second quarter or early in the third quarter of 2017.
© 2017 Private Equity Professional | May 30, 2017