Newell Rubbermaid (NWL) has agreed to acquire the assets of bubba brands, inc., an unit of In Zone Holdings, Inc.
Bubba, a designer and marketer of durable beverage containers, is likely to deliver over $50 million of net sales in 2014. The acquisition would expand Newell Rubbermaid's presence in on-the-go thermal and hydration beverageware, leveraging the company's recent acquisition of the Contigo and Avex brands, and is expected to be accretive to Newell Rubbermaid's net sales growth rate, normalized operating income margin and normalized EPS within the first year.
Newell Rubbermaid President and CEO Michael Polk said, "The acquisition of bubba further strengthens our position as a leader in one of the fastest-growing consumer durables categories in North America. We are excited to add this innovative brand to the portfolio. In combination with the Contigo, Avex and Rubbermaid® brands, the agreement to acquire bubba represents a tremendous opportunity to strengthen our growth agenda as we drive our Growth Game Plan strategy into action."
The transaction would be financed via. organic cash flow and available borrowings and may close this month.
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