Newell Reports Progress On Accelerated Post-Acquisition Transformation Plan

(RTTNews) - Newell Brands Inc. (NWL) has identified an accelerated path to transform the company and deliver enhanced value for shareholders. The company said, through new initiatives, it will emerge simpler, faster and stronger. Newell plans to simplify operations, including a 50 percent reduction in its global factory and warehouse footprint, a 50 percent reduction in its customer base and the consolidation of 80 percent of global sales on two enterprise resource planning (ERP) platforms by the end of 2019. These changes are intended to accelerate overhead reduction, exit more cyclical industrial businesses.

Newell Brands said, following a series of potential divestitures, the company expects to have nine core consumer divisions with approximately $11 billion in net sales and $2 billion of EBITDA.

Newell's divestiture plan is expected to generate approximately $6 billion in net proceeds after taxes, with roughly two-thirds of the proceeds to be used for debt reduction and one third available for additional share repurchases. The company continues to focus on achieving remaining $730 million synergies and cost savings target, including approximately $275 million in 2018.

The company also reaffirmed full-year 2018 outlook previously provided on its fourth quarter earnings release on February 16, 2018.

Newell Brands also announced the appointment of two new independent directors and its intention to nominate one additional director at its 2018 Annual Meeting of Stockholders.