US giant Newell Brands has announced it has entered into a definitive agreement to acquire Sistema Plastics for $470 million.
Sistema Plastics is a New Zealand based manufacturing company that sells a range of plastic storage containers in over 90 countries. It has offices in Australia, UK, France, Scandinavia, and the US along with a worldwide distribution network. It recently opened a 52,000sq m manufacturing plant in Auckland and has over 700 employees.
In addition, Newell Brands has entered into a definitive agreement to acquire Smith Mountain Industries, a provider of premium home fragrance products, primarily under the WoodWick Candle brand, for $100 million.
Newell Brands chief executive officer Michael Polk said: “These two bolt-on acquisitions strengthen our leadership positions in three of our most important categories: food storage, beverage and home fragrance. We will apply our Newell Brands’ capabilities and scale to further both businesses’ already strong performance.”
President Mark Tarchetti added: “We have a proven track record of accelerating the growth of businesses that we acquire in our core categories. Sistema and WoodWick are both design and innovation-driven brands that are already generating very strong top-line growth and highly attractive margins. We look forward to integrating these brands into our portfolio.”
Newell Brands is a consumer goods company with an extensive portfolio of brands including Paper Mate, Sharpie, Dymo, EXPO, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Oster, Sunbeam, FoodSaver, Mr. Coffee, Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Waddington and Yankee Candle.
Sistema is one of the fastest-growing brands in the food storage category, with annual sales of approximately $145 million. Its products are available worldwide, including in several major markets where Newell Brands’ Rubbermaid food storage products are not currently available, creating potential for geographic expansion. Sistema has also been expanding into the beverages category – another area of strategic focus for Newell Brands.
The company was established 34 years ago by managing director Brendan Lindsay, will step down from his position. He said: “Newell has the expertise and market access that will enable them to take the business to the next level and create new opportunities for the company, especially in North America.
“The growth Sistema has experienced in recent years can be attributed in a large part to the hard work and dedication of our New Zealand and overseas employees. That’s why I’m absolutely thrilled that Newell has agreed to keep manufacturing in New Zealand for the next 20 years at our recently opened manufacturing facility.
“It’s been an incredibly exciting, and at times challenging, journey that is a tribute to the hard work and dedication of a lot of people who work and have worked for the company. We had a vision for the company but I don’t think even we imagined we would be selling our products in more than 90 countries around the world. I look forward to watching the continued growth of the business.”
WoodWick Candle is a fast-growing brand in the home fragrance category, with annual sales of approximately $65 million. WoodWick’s scented candles ‘crackle as they burn’ and offer a strategic fit with Newell Brands’ home fragrance portfolio, which includes the Yankee Candle brand.
Both transactions are subject to customary closing conditions, including regulatory approvals in the case of Sistema. 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.