Newell Brands Explained

Newell Brands Inc.
Type:Public
Foundation:, in Ogdensburg, New York, U.S.
Founder:Edgar Newell
Area Served:Worldwide
Industry:Consumer goods
Revenue: (2023)
Operating Income: (2023)
Net Income: (2023)
Assets: (2023)
Equity: (2023)
Num Employees: (2023)
Divisions:Newell Custom Writing
Footnotes:[1] [2] [3]
Location City:Atlanta, Georgia
Location Country:U.S.

Newell Brands Inc. is an American manufacturer, marketer and distributor of consumer and commercial products. The company's brands and products include Rubbermaid storage and trash containers; home organization and reusable container products; Contigo and Bubba water bottles; Coleman outdoor products; writing instruments (Berol, Expo Markers, PaperMate, Dymo, Mr. Sketch, Parker Pens, Sharpie, Reynolds, Prismacolor, Rotring, X-acto, Waterman) glue (Elmer's, Krazy Glue); children's products (Aprica, NUK, Tigex, Babysun, Baby Jogger and Graco); cookware and small appliances (Calphalon, Sunbeam, Rival, Crock-Pot; Holmes, FoodSaver, Oster, Osterizer, and Mr. Coffee) and fragrance products (Yankee Candle, Chesapeake Bay Candle, Millefiori Milano, and WoodWick).

The company's global headquarters is in Atlanta.[4]

History

See also: Rubbermaid.

Newell Company

The Newell Manufacturing Company was founded by Edgar Newell in Ogdensburg, New York, in 1903 as a manufacturer of metal curtain rods.[5] [6]

The F. W. Woolworth retail chain became the first customer for Newell's bronzeplated curtain rods in 1916, making them the first Newell products to be distributed nationally. This marked the beginning of Newell's mass merchandising strategy. As the business grew, the company built a new 15,000-square-foot facility in Ogdensburg, New York.

The company purchased Barnwell Mfg. Co. of Freeport, Illinois in 1921, renaming it Western Newell Manufacturing Company. Freeport's access to railroad lines facilitated shipping products west. Kresge, the department store chain (later Kmart) was one of Western Newell's larger accounts.

Daniel C. Ferguson was named president in 1965 and developed a growth-by-acquisition strategy, intending to build a strong, multi-product company.

The Newell Company went public in 1972, opening on the NASDAQ at $28 per share. In 1974, they acquired EZ Paintr Corporation, then the world's largest maker of paint applicators. Newell was listed on the New York Stock Exchange with the ticker symbol NWL in 1979.[7] In 1979, Newell moved into its first corporate headquarters in a historic former bank building in Freeport, Illinois.

In 1983, the company entered the cookware market with the purchase of Mirro. In 1985, William P. Sovey was announced as the new President. Daniel C. Ferguson continued as vice chairman and chief executive officer of the company.[8] In 1987, the company acquired Anchor Hocking Corporation, a specialty manufacturer of glassware, flatware, cookware and other products. The deal included the purchase of Amerock, a maker of cabinet hardware and window components.[9]

In 1992, they acquired Sanford, a manufacturer and marketer of writing instruments, including the Sharpie and Expo brands. A year later, they acquired Levolor, a manufacturer and marketer of window treatments. They also entered the beauty and style category by acquiring Goody hair care accessories,[10] including Ace men's grooming accessories.They also acquired Stuart Hall a Kansas City stationary company which they held until 1998.[11] [12]

In 1997, Newell acquired Cooper Industries' Kirsch, a company specializing in drapery hardware, and custom window coverings.[13] In 1998, the company expanded in cookware with the purchase of Calphalon Corporation,[14] a manufacturer of cookware marketed primarily to upscale retailers and department stores. The company also purchased Panex, a cookware maker in South America.

In 2016, Newell moved its corporate headquarters from Atlanta to Hoboken, New Jersey. In 2019, it returned to Atlanta.[15]

Criticism

Newell Rubbermaid has been criticized in the UK for closing British factories, including those of Parker Pen, and relocating them to Nantes, France, and China.[16] Similarly, they have been criticized for their handling of Toolmakers Berol, Record and Marples.[17]

Newell Sistema products has been criticized for requiring workers in their Auckland, New Zealand, factory to work in unsafe conditions during the COVID-19 outbreak and lock down without adequate distances between workers and proper personal protective equipment. After a WorkSafe NZ visit, workers were told they would not have to go to work and would be on full pay for the four week lock down.[18]

Mergers

Rubbermaid

In 1999, Newell acquired the Rubbermaid and Graco brand names in a megamerger worth $5.8 billion, and later renamed the combined firm Newell Rubbermaid. This was an acquisition ten times larger than the last biggest acquisition Newell had made, nearly doubled the company's size, and significantly increased Newell's portfolio of brands.

In 2003, the merger was dubbed the "merger from hell" by Businessweek magazine.[19] Newell shareholders lost 50% of their value in the two years following the closing and Rubbermaid shareholders lost 35%. In 2002, Newell wrote off $500 million in goodwill.

Other mergers

In 2000, Newell Rubbermaid acquired Gillette's stationery products business, including the Paper Mate, Parker, Waterman and Liquid Paper brands.

In 2002, they acquired American Tool Companies, adding the Irwin, Vise-Grip, and Marathon brands to their portfolio.

In 2003, Newell Rubbermaid acquired American Saw and Manufacturing Company, a manufacturer of linear-edge power tool accessories, hand tools, and band saw blades marketed under the Lenox brand.

In 2005, the company acquired DYMO, designing, manufacturing, and marketing on-demand labeling solutions. The company expanded its presence in this market with the 2006 purchases of CardScan business card scanners and Mimio interactive whiteboard products along with the 2007 acquisition of postage company Endicia and its Picture-it-Postage brand. In 2005, Mark Ketchum was named president and CEO. The company added the slogan of "Brands That Matter" to their logo to emphasize the change.

In February 2008, Newell Rubbermaid acquired Aprica Kassai, a Japanese maker of strollers, car seats, and other children's products and Technical Concepts, in the away-from-home restroom market. The company created a global headquarters in the Atlanta metropolitan area to consolidate numerous brands and functions under one roof. In July 2011, Michael B. Polk joined the company as president and CEO.[20]

On July 21, 2014, Newell Rubbermaid announced a $308 million acquisition of Ignite Holdings, a Chicago-based maker of reusable water bottles and thermal mugs.[21] Ignite sold its products under two brand names: Avex and Contigo, also acquiring Ignite's proprietary closing mechanism, Autoseal.[22]

On October 5, 2015, Newell Rubbermaid announced that it would acquire Elmer's Products, the makers of Elmer's glue, Krazy Glue, and X-Acto, among other brands, for $600 million. The company also announced plans to divest its window covering brands Levolor and Kirsch.[23]

On December 14, 2015, Newell Rubbermaid announced that it would acquire Jarden for over $15 billion of cash and stock. The combined company would be known as Newell Brands, and 55% would be owned by Newell's shareholders. The combined company would have estimated annual sales of $16 billion.[24] [25]

Divestitures

In 2014 Newell Rubbermaid sold Ashland Hardware Systems, Bulldog and Shurline.

In 2017, Newell sold K2 Sports, Völkl, Diamond Match Company, Levolor and Kirsch.

In January 2018, Newell announced that it would sell off several businesses, mostly former Jarden units, in a refocusing effort.[26] In May 2018, Newell sold Waddington to Novolex.[27] In June 2018, Newell sold Rawlings to Seidler Equity Partners.[28] In August 2018, Newell sold Goody to ACON Investments.[29] In November 2018, Newell sold its Pure Fishing line of business to Sycamore Partners for $1.3 billion and Jostens to Platinum Equity for $1.3 billion.[30]

In June 2019, Newell Brands announced the sale of the United States Playing Card Company to Belgian card manufacturer Cartamundi Group.[31] [32]

Brands

Newell's brands include the following.[33]

Home Appliances

Baby and Health

Commercial Solutions

Food

Home Fragrance

Outdoor & Recreation

Writing (stationery)

Former brands

Notes

Notes and References

  1. Web site: Newell Brands 2023 Annual Report (Form 10-K) . February 21, 2024 . U.S. Securities and Exchange Commission.
  2. Web site: SEC Proxy Statement . April 5, 2023 . U.S. Securities and Exchange Commission.
  3. News: Terlep . Sharon . Newell Brands Slashes Profit Targets, Changes CEOs . 2 June 2023 . Wall Street Journal . February 10, 2023.
  4. Web site: Form 8K . SEC.gov . US SECURITIES AND EXCHANGE COMMISSION . 2 June 2023 . May 23, 2023.
  5. News: Deutsch . Claudia . After Buying Rubbermaid, a Deluge of Sorts . 7 June 2023 . New York Times . March 20, 2004 . C1 . Newell, which started as a manufacturer of curtain rods in 1902.
  6. Web site: Newell Rubbermaid Inc. - Company Profile, Information, Business Description, History, Background Information on Newell Rubbermaid Inc. . GABlind.com . GA Blind Company . 7 June 2023.
  7. News: Three New Listings Set by Big Board This Week . Wall Street Journal . June 25, 1979 . 37 . Newell Cos. starts trading Thursday with the symbol NWL.
  8. News: 24 December 1985 . Newell Head Is Appointed . 12 July 2024 . . 2.
  9. Web site: Gary . Alex . Newell Rubbermaid sells Amerock . Rockford Register Star . USA TODAY Network . 7 June 2023 . August 15, 2013 . The Aldeens owned the company until 1966 when they sold it to Stanley Works for $32 million. Stanley sold it to Anchor-Hocking in 1975 and then Anchor-Hocking sold it to Newell in 1987..
  10. News: Newell to Buy Goody for $24.75 a Share or About $165 Million . Dow Jones Corp. . Wall Street Journal . June 15, 1993 . B4 . Newell continued its growth-through-acquisition strategy.
  11. News: COMPANY NEWS: PEN-TAB HOLDINGS TO BUY NEWELL'S STUART HALL UNIT . 7 June 2023 . New York Times . June 26, 1998 . D3.
  12. News: Storch . Charles . Newell plans to add Stuart Hall to Stable . 7 June 2023 . The Chicago Tribune . April 9, 1992.
  13. News: NEWELL TO BUY COOPER'S DRAPERY DIVISION . 8 June 2023 . Bloomberg News . New York Times . January 31, 1997 . D3 . Kirsch, based in Sturgis, Mich., makes drapery rods and window shades and blinds..
  14. News: COMPANY NEWS; NEWELL IN STOCK SWAP WITH COOKWARE MAKER, CALPHALON . 9 June 2023 . Dow Jones . April 1, 1998 . New York Times . D4.
  15. News: Trubey . J. Scott . Sharpie and Calphalon parent Newell Brands moving back to Atlanta area . 2 June 2023 . The Atlanta Journal-Constitution . August 2, 2019.
  16. Web site: Fischier . Tony . June 4, 2009 . A rendezvous with History A visit to the legendary Parker Archives . October 14, 2017 . parkerpens.net . Parker Pens Archives.
  17. Web site: Duke . Te . March 28, 2013 . Vanished Tool Makers: William Marples & Sons, Sheffield, England . October 14, 2017 . Progress is fine, but it's gone on for too long..
  18. News: Foxcroft . Debrin . Coronavirus: Walkout works as Sistema workers get time off . Stuff . Stuff . March 27, 2020.
  19. Web site: October 19, 2003 . Newell Rubbermaid: Why It'll Bounce Back . https://web.archive.org/web/20141013151231/http://www.businessweek.com/stories/2003-10-19/newell-rubbermaid-why-itll-bounce-back . dead . October 13, 2014 . July 22, 2014 . Business Week.
  20. News: Kass . Arielle . June 24, 2011 . Newell Rubbermaid names new CEO . Atlanta Journal-Constitution . October 24, 2013.
  21. News: Ng . Serena . July 21, 2014 . Newell Rubbermaid to Buy Maker of Reusable Water Bottles . July 21, 2014.
  22. Web site: Elahi, @aminamania . Amina . Newell Rubbermaid to acquire Chicago water bottle maker Ignite for $308 million . August 18, 2020 . chicagotribune.com.
  23. News: Newell Rubbermaid to Buy Maker of Elmer's Glue for $600 Million . Wall Street Journal . October 5, 2015.
  24. News: Newell Rubbermaid to Acquire Jarden for $15.4 Billion . Bloomberg . December 14, 2015.
  25. News: Newell Rubbermaid to Buy Jarden for Over $15 Billion . The Wall Street Journal . December 14, 2015.
  26. Web site: Sheetz . Lauren Hirsch, Michael . January 25, 2018 . Newell Brands stock craters 20%, unveils plans to sell off assets . . November 25, 2018.
  27. Web site: Newell Brands Announces Agreement to Sell The Waddington Group to Novolex . November 25, 2018 . November 26, 2018 . https://web.archive.org/web/20181126092731/http://ir.newellbrands.com/investor-relations/press-releases/press-release-details/2018/Newell-Brands-Announces-Agreement-to-Sell-The-Waddington-Group-to-Novolex/default.aspx . dead .
  28. Web site: Newell Brands Announces Agreement to Sell Rawlings Sporting Goods Company, Inc. to Seidler Equity Partners . November 25, 2018.
  29. Web site: Newell Brands Declares Dividend on Common Stock and Announces Agreement to Sell Goody Products, Inc. to ACON Investments . November 25, 2018 . November 26, 2018 . https://web.archive.org/web/20181126092804/http://ir.newellbrands.com/investor-relations/press-releases/press-release-details/2018/Newell-Brands-Declares-Dividend-on-Common-Stock-and-Announces-Agreement-to-Sell-Goody-Products-Inc-to-ACON-Investments/default.aspx . dead .
  30. Web site: Newell Brands Completes Divestitures of Pure Fishing and Jostens . November 25, 2018.
  31. Web site: June 4, 2019 . Newell Brands Announces Agreement to Sell The United States Playing Card Company to Cartamundi Group . June 5, 2019 . Newell Brands.
  32. Web site: June 4, 2019 . Cartamundi to acquire The United States Playing Card Company . June 5, 2019 . Cartamundi.
  33. Web site: Our Brands.
  34. News: Newell - Healthy Canning . en-US . Healthy Canning . April 1, 2018.