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Newell Brands To Sell Rawlings Sporting Goods To Seidler Equity Partners

Newell Brands Inc. (NWL) said it has agreed to sell Rawlings Sporting Goods Company, Inc., a manufacturer and marketer of sporting goods, to a fund managed by Seidler Equity Partners or SEP, a private investment firm based in Marina del Rey, California.

Major League Baseball or MLB will co-invest with SEP. The transaction is expected to close within about 30 to 45 days.

Founded in 1887, St. Louis, Missouri-based Rawlings comprises the Rawlings, Miken and Worth brands.

Newell Brands noted that the sale of Rawlings is part of its previously announced Accelerated Transformation Plan, designed to create a simpler and stronger portfolio of leading brands.

The company expects gross proceeds from the divestiture to be about $395 million, subject to customary working capital and transaction adjustments. Rawlings' 2017 net sales were about $330 million.

Newell Brands said it expects the transaction to result in after-tax proceeds of about $340 million, which will be applied to deleveraging and share repurchase.

Morgan Stanley acted as financial advisor to Newell Brands on the transaction, while Bank of America Merrill Lynch acted as financial adviser to SEP.

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