Hunter Douglas, the brand leading the world market in window coverings (a major manufacturer of architectural products), is now on the process of acquiring Kirsch and Levolor window coverings business and brands. Newell Rubbermaid Inc. had combined sales of USD 302 million in 2015 and has been reportedly acquired for a price of USD 270 million on the 17th of March 2016. The brand has employed 2600 people.
Founded in 1935, Levolor is a leading supplier of window covering products to the United States and the Canadian redistribution channels. Kirsch, on the other hand, has been a long-established and deep-rooted brand in the heart of the countries that deal with drapery hardware and window coverings.
Popularly termed as “Décor business”, Newell Rubbermaid Inc. has reportedly sold the brands to Hunter Douglas the privately held brand for a sum of $270 million. The amount acquired from the deal is to be used by the firm to pay its own debts. The deal is slated to be closed late this year. “The announced sale of our Décor Business further strengthens our portfolio as we focus our investment behind our highest-potential global growth opportunities,” said Newell Chief Executive Michael Polk. The inactive stock in premarket trade has lost 4.4% this year. S&P is said to have slipped by 0.8%.
“The announced sale of our Décor business further strengthens our portfolio as we focus our investment behind our highest-potential global growth opportunities,” said Newell Rubbermaid President and CEO Michael Polk, in a statement. “We believe the Décor business will benefit from being part of Hunter Douglas, an owner more strategically committed to building and investing in the window coverings market.”
This brand had acquired a sale of about 3.3% marking $5.92 billion in the year of 2015 itself. This marked strong performances from the commercial department, writing and baby units. Nonetheless when profits fell by 7.4% marking $350 million, owing to the negative impact on foreign currency together with the deconsolidation charged in Venezuela in 2015, the brand decided to sell its business to a more reputable and divergent business.
Newell Rubbermaid’s brand consists of products like – Paper Mate, Sharpie, Elmer’s, Lenox, Irwin, Rubbermaid, Calphalon, Contigo, Graco, Goody, Aprica, Dymo, Parker, Waterman and Baby Jogger.
The acquisition currently is subject to regulatory approvals. The acquirement is harmonizing to Hunter Douglas’ Existing business of window coverings in Canada and USA.
Stock Markets list Hunter Douglas at 13.55 or 0.3%lower standing at EUR37.75. Rubbermaid on the other hand, is standing 1.9% higher in the stock market.
Hunter Douglas has its main office situated at Rotterdam, Netherlands. It also has a management office in Lucerne, Switzerland. As of today, Hunter Douglas has 126 companies, 76 assembly operations and 50 manufacturing in over 100 countries around the world. The firm, recording a sale of USD 2.552 billion in 2015, currently employs 16000 people.