Novolex to acquire Waddington Group from Newell Brands: Page 2 of 2

Newell Brands announced plans in January of this year to “transform” the company by selling its smaller consumer businesses such as Rawlings, Goody, Rubbermaid Outdoor, Closet, Refuse & Garage, and U.S. Playing Cards as well as industrial commercial products including Waddington, Process Solutions, Rubbermaid Commercial Products and Mapa.

Newell anticipates that the plan will result in a 50% reduction in the company’s global factory and warehouse footprint and a 50% reduction in its customer base and will consolidate 80% of global sales on two ERP platforms by the end of 2019, said a January 2018 release from Newell Brands.

Newell Rubbermaid acquired Jarden Corp. in December 2015 for $15 billion and renamed the company Newell Brands in 2016. Jarden Corp. began with the spin-off of Ball Canning. Under the direction of CEO Martin E. Franklin, Jarden acquired dozens of consumer companies ranging from Yankee Candle, Diamond Match and U.S. Playing Cards to small household appliance makers such as Sunbeam, Mr. Coffee and Oster. It also acquired the rights to Rival and Crockpot from the Holmes Group. 

The Freedonia Group noted that Novolex is currently a top 10 player in the foodservice disposables market with dominant positions in plastic and paper bags. The Burrows Paper’s Packaging division added clamshell containers, coffee sleeves, and sheets used to wrap food items. The Waddington Group acquisition broadens their product range even further.

If the deal proceeds as planned, Novolex will acquire the three divisions of the Waddington Group including POLAR PAK, WNA and Eco-Products, said the Freedonia Group. These divisions produce cutlery, cups for hot and cold beverages, napkins and catering ware, including plates and bowls. Eco-Products specializes in foodservice items that are compostable or made with a high degree of recycled content. “Calls for food packaging that has minimal negative environmental impact are growing louder and show no signs of leveling off,” commented Freedonia Group’s Henry.

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