Newell Rubbermaid to acquire water bottle company
Newell Rubbermaid is paying $308 million for Ignite Holdings, a manufacturer of reusable water bottles and travel mugs under the Contigo and Avex brands.
Ignite Holdings is currently under North Castle Partners, a private equity firm with a focus in healthy living products. The company has exhibited a track record of growth, with a historical four year sales CAGR of 35%.
"Ignite has a great track record of growth, establishing a leading share position in two of the fastest growing consumer durable categories in North America," said president and CEO Michael Polk. "Their commitment to leverage great design to deliver differentiated products is evident in their results. The acquisition of Ignite marks the next step in the Growth Game Plan as we transform Newell Rubbermaid into a larger, faster growing, more global and more profitable company."
Upon completion of the acquisition, the business will become part of Newell Rubbermaid’s Home Solutions segment, joining the Rubbermaid, Calphalon, Goody and Levolor brands.
"Ignite’s focus on design, product performance and constant innovation is a seamless fit with our Growth Game Plan strategy," said Mark Tarchetti, chief development officer. "This acquisition creates the opportunity to build a global beverage container business leveraging both the premium Contigo and mainstream Rubbermaid brands. We intend to invest behind the business to build on Ignite’s current strong momentum, expanding product lines, channels of distribution and geographic footprint over time."
The transaction, which Newell Rubbermaid says will add $125 million in revenue to its coffers in 2014, is expected to close by the third quarter of this year. Some of that profit will be reinvested in the growth of the Contigo and Avex brands.
PPG selling Mt. Zion glass facility
PPG Industries is moving forward with its plans to sell the assets of its Mt. Zion, Illinois glass manufacturing facility to its partner of 13 years, glass manufacturer Fuyao Glass America Inc.
In Fuayo’s hands, the facility (which currently manufactures glass for residential and commercial projects) will be retrofitted to produce automotive glass.
The change won’t come without a transition period, however. PPG is planning to operate the plant for up to one year, during which it will produce SUNGATE coated glass and clear glass. Eventually, it’ll shift production for those products to its other North American glass manufacturing sites.
“Glass coatings technology remains the engine of our growth and we plan to make incremental technology investments in our facilities to improve our current capacity for better-performing, low-e glass and to expand our overall technical capabilities for newer, more advanced products,” said Richard Beuke, VP flat glass.
The transaction is expected to be completed in the third quarter of this year, subject to customary closing conditions. The specific financial terms of the deal were not disclosed.