Newell Rubbermaid To Acquire Baby Jogger From Riverside For About $210 Mln

(RTTNews) - Newell Rubbermaid (NWL) announced it has signed a definitive agreement to acquire Baby Jogger Holdings, Inc. from The Riverside Company for a purchase price of about $210 million, subject to customary working capital and transaction adjustments.

Baby Jogger is expected to deliver about $90 million of net sales in 2014 and has a strong growth track record. The acquisition is expected to be accretive to Newell Rubbermaid's growth rate and normalized EPS in the first year, the company said.

Commenting on Baby Jogger, Newell said it is a leading designer and marketer of branded infant and juvenile products focused on premium and activity strollers and related accessories. Founded in 1984 and located in Richmond, Virginia, the company has built a strong reputation thanks to its full line of award-winning functional products designed for active and on-the-go parents.

Newell said that the acquired business will become part of the Baby & Parenting segment with Baby Jogger joining the company's Graco and Aprica businesses.

The acquisition is expected to be financed through a combination of organic cash flow and available borrowings and is expected to close by the end of the fourth quarter of 2014, according to the company.