Adds new categories and global scale in rapidly growing away-from-home
washroom market
ATLANTA, Feb. 27 /PRNewswire-FirstCall/ -- Newell Rubbermaid (NYSE:
NWL) today announced it has signed a definitive agreement to acquire
Technical Concepts Holdings, LLC, ("Technical Concepts") a leading global
provider of innovative restroom hygiene systems for several high-growth
segments of the away-from-home ("AFH") washroom category, for approximately
$445 million. Technical Concepts' products include touch-free and automated
health, wellness and odor control solutions, as well as proprietary
refills, which are a key component of recurring revenue.
The transaction, which is subject to regulatory approval and customary
closing conditions, is expected to close in the first half of 2008. It is
anticipated to be neutral to earnings in 2008 and accretive in 2009. For
the year ended Dec. 31, 2007, Mundelein, Ill.-based Technical Concepts
reported net sales of approximately $137 million.
The acquisition of Technical Concepts will add substantial scale to
Newell Rubbermaid's Commercial Products global business unit, creating a
leading position in the $2.5 billion worldwide AFH washroom category. In
addition, with approximately 40 percent of sales outside the U.S.,
Technical Concepts is expected to significantly increase the combined
entity's global footprint.
"Our Rubbermaid Commercial Products brand is a key engine of growth for
Newell Rubbermaid," said Larry McIsaac, president of Newell Rubbermaid's
Commercial Products global business unit. "This acquisition fits our
strategy to expand our core platforms into product categories where brands
matter and customers place a premium on innovation."
Added Jack Vresics, president and chief executive officer of Technical
Concepts, "As a high-quality supplier able to meet all of the broad,
technically advanced AFH washroom needs, we can even more rapidly
accelerate our growth by leveraging the size, scale and channel
relationships of Rubbermaid Commercial Products and Technical Concepts
around the world."
Newell Rubbermaid estimates there are 25 million public AFH washrooms
around the world, with significant opportunity for additional penetration
of Technical Concepts' systems. Amid an increasing public concern for
hygiene and the transmission of infectious diseases, facilities managers
for airports, educational institutions, commercial buildings and other
spaces are installing washroom solutions to provide end-user peace of mind
and reduce resource costs.
Technical Concepts and Rubbermaid Commercial Products share many of the
same distribution channels and customer sets, providing the opportunity for
meaningful improvements to customer service and continued growth. Technical
Concepts generates revenue from products in the air care, skin care,
surface care and touch-free categories, through the sales of fixtures,
proprietary dispensers and associated refills. Known as a technology
innovator, the company derives significant revenue from patented products
and has several exciting new offerings in its development pipeline.
Technical Concepts was founded in 1987 and has approximately 200 employees
in six locations worldwide.
Caution Concerning Forward-Looking Statements
The statements in this press release that are not historical in nature
constitute forward looking statements. These forward-looking statements
relate to information or assumptions about the proposed transaction between
the Company and Technical Concepts, the expected timetable for completing
the transaction, benefits and synergies of the transaction, future
opportunities for the combined company and products and any other
statements regarding the future expectations, beliefs, goals or prospects
of the Company or Technical Concepts. These statements are accompanied by
words such as "anticipate," "expect," "project," "will," "believes,"
"estimate" and similar expressions. Actual results could differ materially
from those expressed or implied in the forward-looking statements.
Important factors that could cause actual results to differ materially from
those suggested by the forward-looking statements include, but are not
limited to, our dependence on the strength of retail economies; competition
with other manufacturers and distributors of consumer products; major
retailers' strong bargaining power; changes in the prices of raw materials;
our ability to develop innovative new products and to develop, maintain and
strengthen our end-user brands; our ability to expeditiously close
facilities and move operations while managing foreign regulations and other
impediments; our ability to implement successfully information technology
solutions throughout our organization; our ability to improve productivity
and streamline operations; the risks inherent in our foreign operations and
those factors listed in the company's most recent quarterly report on Form
10-Q, and Exhibit 99.1 thereto, filed with the Securities and Exchange
Commission. Changes in such assumptions or factors could produce
significantly different results. The information contained in this news
release is as of the date indicated. The company assumes no obligation to
update any forward-looking statements contained in this news release as a
result of new information or future events or developments.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of
consumer and commercial products with sales of over $6 billion and a strong
portfolio of brands, including Rubbermaid(R), Sharpie(R), Graco(R),
Calphalon(R), Irwin(R), Lenox(R), Levolor(R), Paper Mate(R), Dymo(R),
Waterman(R), Parker(R), Goody(R), Bernzomatic(R) and Amerock(R). The
company is headquartered in Atlanta, Ga., and has approximately 22,500
employees worldwide.
This press release and additional information about Newell Rubbermaid
are available on the company's Web site, http://www.newellrubbermaid.com.
NWL-AD
SOURCE Newell Rubbermaid
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CONTACT:
Ron Hardnock, Vice President, Investor
Relations, +1-770-407-3994, or David Doolittle, Vice President,
Corporate Communications, +1-770-407-3613, both of Newell
Rubbermaid
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