Sanford Parent Company to Acquire Drinkware Brands
Newell Rubbermaid, the parent company of Sanford Business to Business, has signed a definitive agreement to acquire beverage container brands Contigo and Avex.
Newell Rubbermaid will purchase Chicago-based Ignite Holdings from North Castle Partners, Greenwich, Conn., for $308 million, which would be subject to customary working capital adjustments. The deal would be financed through organic cash flow and available borrowing. It is expected to close by the end of the third quarter.
"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," Michael Polk, Newell Rubbermaid president and CEO, said referring to its significant growth in on-the-go thermal and hydration beverage container markets. "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."
Ignite is expected to net $125 million this year. The company's growth has reached historical numbers with its compound annual growth rate at 35 percent for the past four year. Newell Rubbermaid plans to reinvest a portion of Ignite's profitability to build the Contigo and Avex brands further.
"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. "The Contigo brand has set the standard for the category and we are proud to make it part of our portfolio. 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."
"We are delighted to have found a long term strategic owner for the business who shares our pride in the achievements and strength of the company, but can bring a new level of investment and global perspective," added Sami El-Saden , CEO of Ignite.
For more information, visit www.gocontigo.com.