Newell Rubbermaid has announced plans to sell its hardware business to Nova Capital, a firm that specializes in the acquisition of corporate and private equity portfolios, for $214 million.
Specifically, components of the sale include Newell's Amerock, Ashland, Drapery Hardware, Bulldog and Shur-Line brands. Sales for 2013 came in at $255 million so far, with gross proceeds resting at $214 million.
The move is part of a larger initiative by Newell to streamline the company's operations in order to reduce costs and buoy its focus on products with growth potential, according to the Wall Street Journal.
“The successful sale of our hardware business will leave us with a focused, cohesive portfolio of brands in five core business segments, each of which have significant potential to grow through innovation, brand development and selective emerging market expansion," said president and CEO Michael Polk. "That’s the Growth Game Plan in action."
Nova investment partner David Jacobs said that he expects to see sustained growth in the hardware business, due in part to the continued housing recovery and growth in the home improvement market.
Nick Morrisroe, VP and general manager of hardware for Newell Rubbermaid, will maintain his position overseeing the combined businesses.
The deal, which was advised by Rothschild, is set to close at some point next quarter.