Hoboken-based Newell Brands announced it is exploring a variety of strategic initiatives to fast-track changes to the company, including improving operational performance and enhancing shareholder value.
The main factors of the transformation plan include:
- Focusing the Newell portfolio of nine consumer divisions with approximately $11 billion in net sales and $2 billion of earnings before interest, taxes, depreciation and amortization;
- Exploring options for industrial and commercial product assets;
- Exploring options for the smaller consumer business.
Completing the plan, Newell said, would result in a 50 percent reduction in the company’s global factory and warehouse footprint, a 50 percent reduction in its customer base, and the consolidation of 80 percent of global sales on two ERP platforms by the end of 2019.
“Today’s announcement is a step toward a significant acceleration in our transformation plan. We believe that exiting nonstrategic assets, reducing complexity and focusing on our key consumer-focused brands will make us more effective at unlocking value and responding to the fast-changing retail environment,” said Michael Polk, Newell Brands CEO.
“A stronger, simpler, faster Newell, together with leading brands, brilliant marketing, outstanding innovation and an advantaged e-commerce capability, better positions us to win in these dynamic times. As a result, we have chosen to explore these strategic options.”