Newell Brands Inc NWL revealed Friday that it has closed the divestment of its Levolor and Kirsch window coverings brands to Hunter Douglas, a worldwide leader in window coverings.
Newell Brands said that gross proceeds from the divestments were approximately $270 million including the retention of accounts receivable. The company added that its net proceeds of the sale would be used for debt repayment, in line with its capital allocation priority and commitment to achieve a target leverage ratio of 3.0 - 3.5 times in the next two to three years.
The company's CEO Michael Polk said, "This transaction strengthens our portfolio as we become even more focused on our highest-potential growth opportunities. I am pleased that our dedicated window coverings employees will be joining the Hunter Douglas organization. This category is a core business to Hunter Douglas and they will clearly commit to the strategic development of the brands and the category."
On Thursday, the stock gained 1.53 percent.
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