Newell Rubbermaid Inc., has entered into an agreement for the intended sale of its Newell Cookware Europe business to France“s Arc International S.A, it was announced 11 October 2005. The intended sa…
Newell Rubbermaid Inc., has entered into an agreement for the intended sale of its Newell Cookware Europe business to France“s Arc International S.A, it was announced 11 October 2005. The intended sale is subject to consultation with applicable works councils, trade unions and employees. The Newell Cookware Europe business, which includes the brands Pyrex(R) (used under exclusive license from Corning Incorporated and its subsidiaries in Europe, the Middle East and Africa only) and Vitri(R), contributed approximately USD 115 million of revenue in 2004, reported in the company“s Home & Family segment. The transaction is expected to close on or before 31 January 2006, subject to regulatory approvals and certain other closing conditions. Newell Rubbermaid Inc. says the transaction is consistent with the company“s intention to divest non-strategic businesses and concentrate on leveraging brand strength and product innovation in its core portfolio of businesses. The company“s other European businesses and the company“s Calphalon business will be unaffected by the sale. Newell Rubbermaid Chief Financial Officer Patrick Robinson said, “We continue to stay focused on improving our core businesses and strengthening our portfolio which will better position our organization to deliver long-term sustainable growth.” In connection with this transaction, the company expects to record a total net loss of approximately USD 25-35 million, approximately USD 23 million of which will be recorded as a non-cash impairment charge in the 3Q 2005. The company will report 3Q and full year 2005 earnings per share on a GAAP basis and on a proforma basis, excluding impairment charges.