Newell Rubbermaid Inc. (NWL:US) agreed to buy Ignite Holdings LLC from private-equity firm North Castle Partners for about $308 million, gaining a line of travel mugs and water bottles.
Ignite’s sales are expected to reach $125 million in 2014 after growing 35 percent annually the past four years, Atlanta-based Newell Rubbermaid said in a statement. The deal is slated to close by the end of the third quarter, the company said.
Newell Rubbermaid, a maker of food-storage containers, baby gear and writing instruments, is looking to reignite sales after years of sluggish revenue growth. Ignite’s beverage containers, sold under the Contigo and Avex brands, should add to sales and profit within the first year, the company said. The products have benefited from growing demand for more environmentally friendly reusable drink containers.
“We intend to invest behind the business to build on Ignite’s current strong momentum, expanding product lines, channels of distribution and geographic footprint over time,” Mark Tarchetti, chief development officer, said in the statement.
Newell Rubbermaid shares fell 0.6 percent to $31.15 at the close in New York. The stock has declined 3.9 percent this year.
Robert W. Baird & Co. served as Newell Rubbermaid’s financial adviser on the transaction.
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