Free Newsletter
ATLANTA—Newell Rubbermaid announced it has signed a definitive agreement to acquire stroller manufacturer Baby Jogger Holdings, Inc., from The Riverside Company, a global private equity firm.
The purchase price is reported as approximately $210 million, subject to customary working capital and transaction adjustments. The acquisition is expected to be accretive to Newell Rubbermaid’s growth rate and normalized EPS in the first year. Baby Jogger is expected to deliver approximately $90 million of net sales in 2014 and has a strong growth track record.
Newell Rubbermaid President and CEO Michael Polk said, “Baby Jogger has a great track record of growth and innovation, and their City Mini,, City Select and other sub-brands in the premium stroller category are perfect complements to our Graco stroller business. Baby Jogger sells its products in more than 70 countries around the world and will help us transform Newell Rubbermaid into a larger, faster growing, more global and more profitable company.”
The acquired business will become part of the Baby & Parenting segment, which includes the company’s Graco and Aprica businesses.
“We are delighted to have found a long term strategic owner for the business who shares our pride in the achievements and vision of the company, but can bring a new level of investment and broad juvenile products expertise,”said Mark Zehfuss , CEO of Baby Jogger.
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, subject to customary conditions and regulatory approvals. Robert W. Baird & Co. acted as financial advisor to Newell Rubbermaid on this transaction.
