US-based Newell Rubbermaid has signed an agreement with North Castle Partners to acquire Ignite Holdings, for about $308m.
In the inital year, the acquisition of the beverage containers designer is said to be accretive to Newell's growth rate, normalized operating income margin and normalized EPS.
Plans are also underway by Newell to reinvest a portion of the acquired company's profitability to expand the Contigo and Avex brands.
Both the acquired brands will be included in the Newell's Home Solutions segment, which comprises Rubbermaid, Calphalon, Goody and Levolor brands.
Newell Rubbermaid president and CEO Michael Polk said that Ignite has a good track record of growth and holds a leading share position in two of the fastest growing consumer durable categories in North America.
"The acquisition of Ignite marks the next step in the Growth Game Plan as we transform Newell Rubbermaid into a larger, faster growing, more global and more profitable company," Polk added.
Ignite CEO Sami El-Saden said, "We are delighted to have found a long term strategic owner for the business who shares our pride in the achievements and strength of the company, but can bring a new level of investment and global perspective."
The transaction, which is expected to be completed in the third quarter of 2014, is subject to customary conditions and regulatory approvals.
Under the Contigo and Avex brands, Ignite designs and markets durable beverage containers.
Ignite holds good position in the on-the-go thermal and hydration beverage containers market, and is expected to generate around $125m of net sales in 2014.
The company sells its products in about 50 countries through club, mass, sporting goods, specialty, direct-to-consumer, and exclusive strategic partnerships.
