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NWL

Newell Brands

$50.34

-1 (-1.95%)

, SWK

Stanley Black & Decker

$117.66

-4.02 (-3.30%)

06:33
10/12/16
10/12
06:33
10/12/16
06:33

Newell Brands to sell Tools business to Stanley Black & Decker for $1.95B

Newell Brands (NWL) announced it has entered into a definitive agreement to sell its Tools business, including the Irwin, Lenox and Hilmor brands, to Stanley Black & Decker (SWK). This agreement has been reached in the context of a series of strategic changes announced last week related to the company's new corporate strategy. Gross proceeds from the divestiture are expected to be $1.95B, which includes retained accounts receivable, subject to customary working capital and transaction adjustments. Net sales for the divested business were approximately $760M for the last twelve months. The transaction is expected to close in the first half of 2017, subject to certain customary conditions, including regulatory approvals. Proceeds will be primarily used to pay down debt in furtherance of the company's stated goal of achieving a leverage ratio of 3 to 3.5 times EBITDA by the end of 2018. If the transaction were to be completed on December 31, 2016, the company would expect normalized EPS dilution of approximately 15c on an annualized basis after the benefit of short term cost actions and lower interest expense related to accelerated debt repayment. J.P. Morgan acted as financial advisor to Newell Brands on the transaction. As previously announced, as the result of a recently completed strategic review of its portfolio, Newell Brands has taken the decision to hold a number of other businesses for sale including its two winter sports units, Volkl(R) and K2(R), within the Outdoor Solutions Segment, its Heaters, Humidifiers, and Fans business within the Consumer Solutions Segment and the Rubbermaid(R) Consumer Storage business within the Home Solutions segment. Newell Brands will retain its Dymo(R) Industrial labeling business within the reported Tools segment. The total 2015 net sales of the remaining businesses held for sale is approximately $700 million. Sales processes are underway and the company hopes to complete the divestiture of the remaining assets held for sale within the first half of 2017.

NWL

Newell Brands

$50.34

-1 (-1.95%)

SWK

Stanley Black & Decker

$117.66

-4.02 (-3.30%)

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NWL Newell Brands
$50.34

-1 (-1.95%)

05/19/16
RBCM
05/19/16
NO CHANGE
RBCM
Newell Brands new CFO has several positive attributes, says RBC Capital
RBc Capital believes that Newell's (NWL) new CFO, Ralph Nicoletti, will bring "increased financial discipline," a focus on total shareholder returns, "and a very analytical, research driven approach to decision making and strategy" to the position. The firm notes that some investors have been concerned about the 36% underperformance by Tiffany's (TIF) stock during his tenrue at that company. However, RBC says that Tiffany's results have always been "volatile," particularly recently due to macro issues. RBC says that the shares of Alberto-Culver and Cigna (CI) outperformed during Nicoletti's stints as CFO of those companies. RBC keeps a $60 price target and Top Pick rating on Newell.
08/01/16
UBSW
08/01/16
NO CHANGE
Target $59
UBSW
Buy
Newell Brands investor concerns over growth abating, says UBS
UBS said as Newell Brands investors concerns abate, their attention will turn to the long-term. The firm tweaked its growth forecast but raised its earnings forecast to reflect the company's underlying strength, better margin mix, and sales leverage benefits. UBS reiterated its Buy rating and raised its price target to $59 from $55 on Newell Brands shares.
08/01/16
MSCO
08/01/16
NO CHANGE
MSCO
Overweight
Newell Brands reiterated as a Top pIck at Morgan Stanley
Morgan Stanley analyst Dara Mohsenian said Newell Brands' valuation does not reflect growth opportunities post the Jarden deal. The analyst believes Newall's market share gains are sustainable and sees substantial earnings upside for the combined entity. Mohsenian reiterates Newall as an Overweight and Top Pick with plenty of room for multiple expansion.
09/14/16
JEFF
09/14/16
NO CHANGE
Target $66
JEFF
Buy
Newell Brands remains a top pick at Jefferies
Jefferies analyst Kevin Grundy says his regional market analysis suggests that Yankee Candle can double sales to $2B over the next six-to-seven years. He believes shares of Newell Brands remain undervalued and expects consensus estimates to move higher. The analyst calls the stock a top pick with a Buy rating and $66 price target.
SWK Stanley Black & Decker
$117.66

-4.02 (-3.30%)

07/19/16
CLVD
07/19/16
NO CHANGE
CLVD
Stanley Black & Decker Q2 tool deman appears softer, says Cleveland Research
07/25/16
ZELM
07/25/16
DOWNGRADE
ZELM
Hold
Stanley Black & Decker downgraded to Hold from Buy at Zelman
08/22/16
LBOW
08/22/16
DOWNGRADE
LBOW
Neutral
Stanley Black & Decker downgraded to Neutral from Buy at Longbow
Longbow analyst David MacGregor downgraded Stanley Black & Decker to Neutral siting balanced risk/reward as shares are up 35% since mid-Q1 2016.
08/22/16
08/22/16
DOWNGRADE

On The Fly: Top five analyst downgrades
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Workday (WDAY) downgraded to Mixed from Positive at OTR Global and to Hold from Buy at Needham with Needham analyst Scott Berg citing industry checks that indicate second quarter billings upside will be limited and Financials sales remain challenging. 2. Garmin (GRMN) downgraded to Market Perform from Outperform at Raymond James with analyst Tavis McCourt citing valuation. 3. Urban Outfitters (URBN) downgraded to Neutral from Buy at Goldman with analyst Lindsay Drucker Mann saying Urban has successfully turned around the UO brand and is near-peak operating performance, leaving less room for meaningful improvement from here. 4. Stanley Black & Decker (SWK) downgraded to Neutral from Buy at Longbow with analyst David MacGregor citing balanced risk/reward as shares are up 35% since mid-first quarter. 5. Madison Square Garden (MSG) downgraded to Hold from Buy at Jefferies with the firm citing valuation and lack of near-term catalysts. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.

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