Newell Rubbermaid to acquire label maker manufacturer Dymo Corp.
August 29, 2005 - Acquisition is expected to close by the end of the year.
Newell Rubbermaid Inc. has reached a definitive agreement to acquire label maker manufacturer Dymo Corp. for approximately $730 million in cash.
The acquisition, which is expected to close by the end of the year, is subject to applicable regulatory approvals and other customary closing conditions. Newell Rubbermaid (www.newellco.com), an office supply manufacturer based in Atlanta, GA, expects the acquisition to be neutral to earnings in 2005 and approximately $0.06 per share accretive in 2006.
Dymo (www.dymo.com) is a division of Esselte Group Holdings AB (www.Esselte.com)
Dymo offers a range of manual and electronic label makers, PC and Macintosh connected label printers and related consumables for all its products. Dymo's product lines include LabelWriter, LabelManager, LetraTAG and RhinoPro.
The company has built a position in consumer, office and industrial channels in North America, Europe and Australia. Headquartered in Stamford, CT., Dymo generated global net sales of approximately $225 million in 2004.
"The combination of Dymo and our writing instruments and office products business represents a significant opportunity given the complementary nature of the product lines, distribution networks and geographies," says Joseph Galli, CEO of Newell Rubbermaid. "This is an excellent example of our commitment to transform our portfolio into a focused group of leadership platforms through investment in high-quality brands with a proven track record of bringing innovative new products to the category."
Phil Damiano, president of Dymo, will remain with the organization and lead this strategic business unit within Newell Rubbermaid's Office Products Group.
"Dymo has an impressive track record of growth," says Damiano. "The combined strengths of Dymo and Newell Rubbermaid in the consumer, office and industrial channels will allow us to build on this success."
Newell Rubbermaid's Office Products Group accounted for $1.7 billion of the company's $6.5 billion in sales in 2004. The group manufactures and markets writing instruments, art products and office organization supplies, led by a brand family including Sharpie, Paper Mate, Parker, Waterman, Expo, uni-ball, and Rolodex.