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Sycamore is buying Pure Fishing hook, line and sinker as part of two announced sales by Newell Brands
Posted on Wednesday, 07 November 2018 15:11
Newell Brands has announced two consecutive sales today, including the disposal of fishing equipment manufacturer Pure Fishing to private equity firm Sycamore Partners.
The buyout group is paying roughly USD 1.30 billion for the tackle, lures, rods and reels maker, in a deal that remains subject to working capital and transaction adjustments.
In addition, Newell announced plans to sell Jostens, a manufacturer of memorabilia, to Platinum Equity, again for USD 1.30 billion.
The potential of this deal was widely reported in the media just last week, with Reuters citing people close to the matter as saying the private equity firm is considering buying the target for the exact price it is being sold at.
Newell said the two sales are part of its accelerated transformation plan to create a faster and simpler consumer-focused portfolio of leading brands.
Both deals remain subject to the usual raft of regulatory approvals and are expected to complete during the fourth quarter of 2018.
Pure Fishing, which houses brands such as Abu Garcia, All Star, Chub and Mitchell, generated USD 556.00 million in net sales last year.
Josten’s recorded sales of USD 768.00 million in 2017 and makes yearbooks, publications, jewellery and consumer goods for education and sports professionals.
Pure Fishing was founded in 1897 and has operations in 19 countries worldwide.
The company was acquired by Jarden for USD 400.00 million in 2007, before the buyer was picked up by Newell for USD 16.03 billion in 2016.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 53 deals targeting sporting and athletic goods manufacturers announced worldwide since the start of 2018.
The largest of these involves Canadian Tire acquiring Norway-based outdoor clothing maker Helly Hanson for CAD 1.04 billion (USD 792.54 million).
US-based indoor cycling studio Pelton Interactive and baseball equipment manufacturer Rawlings Sporting Goods Company, as well as Finland-headquartered sporting equipment group Amer Sports, among others, have also been targeted in 2018.
© Zephus Ltd