Going ahead with its long-term ‘Growth Game Plan’, Newell Rubbermaid Inc. (NWL - Analyst Report) recently sold out its Teach Platform business to a Beverly Hills, Calif. based private equity firm, Skyview Capital, LLC. Newell’s Teach Platform business includes the Mimio and Headsprout interactive teaching technology brands.
We believe that the recently concluded transaction will enable Newell to simplify its product portfolio and avail other highest-potential global growth opportunities. The company has not disclosed the terms of the deal. As part of a restructuring initiative to boost profitability, Newell put its Hardware and Teach Platform businesses up for sale in May 2013.
Newell, the maker of Sharpie pens and Calphalon cookware is in its early stage of ‘Growth Game Plan’ as announced in Oct 2012, under which it intends to eliminate approximately 10% of the workforce, build a new organizational model as well as leadership team.
We believe that the growth plan will help Newell to reduce the complexities of the organization, boost efficiencies in customer services and sourcing functions and increase investments in the core business areas. The long-term growth plan, which is expected to be fully implemented by the end of second-quarter fiscal 2015, will save approximately $180–$225 million annually.
As part of its long-term strategy, last month, Newell appointed Jeremy Liebowitz as the Vice President, Global E-Commerce. Liebowitz, in the new position, will be in charge of boosting the company’s online revenue growth across the globe with immediate effect.
Liebowitz is a familiar name in the industry, possessing more than 18 years of experience in building successful e-Commerce platforms. Most recently, he accomplished substantial online revenue growth multiples over a 5-year term, as the Vice President of Digital Commerce and Marketing for Jarden Corp. (JAH - Snapshot Report). Prior to this, Liebowitz played an important role in e-Commerce at Limited Brands Inc, now known as L Brands Inc. , and TracFone Wireless Inc.
Atlanta, Ga.-based Newell Rubbermaid Inc. is a global manufacturer and marketer of consumer and commercial products, including Sharpie, Paper Mate, Parker, Waterman, Rubbermaid (writing instruments, storage containers), Calphalon (cookware), Little Tikes, Graco (juvenile products), Levolor, BernzOmatic, VISE-GRIP, IRWIN (hardware, household products, and tools), and LENOX. Newell, which competes with Avery Dennison Corporation (AVY - Analyst Report), carries a Zacks Rank #2 (Buy).