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Newell Brands: Accelerated Transformation Plan To Include Jostens, Pure Fishing

Newell Brands (NWL) announced the expansion of its Accelerated Transformation Plan, adding Jostens and Pure Fishing to the list of potential divestitures previously announced. The Accelerated Transformation Plan include: restructuring Newell Brands to a more than $9 billion global consumer products company with leading brands in seven core consumer divisions; divesting non-core businesses representing approximately 35 percent of the company's net sales; and applying approximately $10 billion in after-tax proceeds from divestitures in combination with free cash flow from operations after dividends to debt repayment and significant accretive share repurchase.

The execution of the Accelerated Transformation Plan will result in a dramatic simplification of the company's operations: 66% reduction in the number of manufacturing facilities; 55% reduction in distribution centers; 58% simplification of the company's retailer and distributor interfaces; 45% reduction in brands; 39% reduction in number of employees; effective elimination of its unbranded businesses; and reduction of more than 30 ERP systems to two by the end of 2019.

The company said the divestiture process is well underway and expects to complete all transactions by the end of 2019. In 2020, the company expects net sales of approximately $9.5 billion and normalized operating margin greater than 15 percent.

The company also announced the signing of a definitive agreement to sell The Waddington Group to Novolex Holdings LLC for approximately $2.3 billion. The company expects the transaction to be completed within approximately 60 days and result in after-tax proceeds of approximately $2.2 billion. Proceeds will be applied to deleveraging and share repurchase.

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