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Yankee Candle to remain core business as company sells properties.
October 4, 2016
By: Christine Esposito
Editor-in-Chief
Newell Brands Inc.—a company that plays in diverse categories that range from ski and snowboard equipment to ballpoint pens to candles to food storage to name just a few—has unveiled a series of changes following comprehensive strategic review of its business conducted since the completion of the Newell Rubbermaid and Jarden combination. The firm says it will transform from a holding company to an operating company and, with a “new set of investment priorities and a sharpened set of portfolio choices, accelerate growth and performance by deploying a proven set of growth capabilities over a broader set of categories and by disproportionately resourcing the business with the greatest potential.” Specifically, the company will simplify its operating structures consolidating the existing 32 business units to 16 operating divisions, including the creation of a new global enterprise-wide e-commerce division. Additionally, Newell Brands plans to sell about 10% of its portfolio including the vast majority of the tools segment; its winter sports businesses; the heaters, humidifiers, and fans businesses and its consumer storage container business. The total 2015 net sales of the businesses on the block represent about $1.5 billion, and include about $100 million of the $250 to $300 million of previously announced exits or assets held for sale. The firm's home fragrance business—Yankee Candle—will remain a focus. In late 2015, Newell (then operating as Newell Rubbermaid) and Jarden Corporation, owner of Yankee Candle, announced their combination. Jarden acquired Yankee Candle in 2013. “The combination of Newell Rubbermaid and Jarden has created a unique platform for transformative value creation and the actions we are taking to reshape the company will unlock this opportunity, bringing greater investment and growth to our highest potential categories like writing, home fragrance, baby, food storage and preparation, appliances and cookware, and outdoor and recreation. The choices we are making will strengthen the underlying growth and performance of our most strategic businesses and over time enable us to scale our core categories through external development,” said Mark Tarchetti, Newell Brands president.
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