(Reuters) - Newell Brands Inc (NWL.N), which owns more than 160 brands including Sharpie markers and Rubbermaid food containers, said it would sell about 10 percent of its business portfolio as it streamlines its business following its acquisition of Jarden Corp.
The company also said it would simplify its operating structure by halving its 32 business units and create a new global online business.
The businesses to be sold had sales of about $1.5 billion last year and include the majority of Newell’s tools business; the winter sports businesses; heaters, humidifiers and fans businesses within consumer solutions; and its storage container business.
This would include sale of a portion of the Rubbermaid storage business which makes large organizer containers, a spokeswoman said.
Other Rubbermaid products such as containers for keeping produce fresh remain a priority for the company, she added.
The company bought Jarden, the maker of Yankee Candle and Crock-Pot cookware in April, which added about 120 brands to Newell’s portfolio. The combined company is estimated to have annual revenue of $16 billion.
The actions announced on Tuesday would not impact Newell’s 2016 forecast for core sales growth of 3-4 percent and adjusted earnings of $2.75-$2.90 per share, the company said.
Newell said the sale processes were underway and it hoped to complete the divestitures in the first half of 2017. The sale proceeds would be used to accelerate pay down of debt.
The restructuring would help the company invest more and grow its “highest potential categories” such as writing, home fragrance, baby, food storage, appliances and cookware, and outdoor and recreation, Newell President Mark Tarchetti said.
Newell said in April it would offload a number of businesses with annual revenue of $250 million-$300 million in the next two to three years, the majority of which would be from the Jarden portfolio.
The company’s shares were flat at $52.26 in morning trading on Tuesday.
Reporting by Sruthi Ramakrishnan in Bengaluru additional reporting by Aravind K; Editing by Martina D'Couto