Newell Brands to spend $570 mln on two acquisitions
Newell Brands Inc. announced Monday a deal to buy New Zealand's Sistema Plastics, a provider of food storage containers, for the equivalent of $470 million. The consumer goods company also said it was buying home fragrance company Smith Mountain Industries, which owns the WoodWick Candle brand, for $100 million. Newell said it will fund both acquisitions with cash on hand, and will not use the proceeds from the planned divestitures to pay for the deals. The Sistema deal is expected to close in the second quarter of 2017 and the WoodWick Candle deal is expected to close in the first quarter. Newell's stock, which was still inactive in premarket trade, has gained 3.3% year to date, while the S&P 500 has climbed 11%.
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