MLB, Investors Buying Rawlings From Hoboken-Based Company

HOBOKEN, NJ — Hoboken-based consumer goods giant Newell Brands Inc. has announced plans to sell one of its most recognizable assets: the Rawlings Sporting Goods Company.

On Tuesday, Newell Brands – the parent company of Elmer's glue, Sharpie and Rubbermaid – said that it signed a definitive agreement to sell the St. Louis-based Rawlings, which was founded in 1887. Half of the new ownership team is comprised of the Major League Baseball (MLB) organization, which is co-investing with California-based private investment firm Seidler Equity Partners.

The sale is part of Newell Brands’ previously announced “Accelerated Transformation Plan,” the company stated.

According to Newell Brands:

“Gross proceeds from the divestiture are expected to be approximately $395 million, subject to customary working capital and transaction adjustments. Rawlings’ 2017 net sales were approximately $330 million. The company expects the transaction to result in after-tax proceeds of approximately $340 million, which will be applied to deleveraging and share repurchase.”

The transaction is expected to close “within approximately 30 to 45 days,” subject to customary closing conditions, including regulatory approval, Newell Brands stated Tuesday.

“We are pleased with the agreement to sell Rawlings at an attractive multiple,” said Michael Polk, Newell Brands president and chief executive officer. “Rawlings is an iconic brand and Seidler Equity Partners, in partnership with Major League Baseball, will identify new opportunities for this brand and for the company’s employees. This transaction is a pivotal step in our company’s transformation to become a more focused, forward-facing consumer goods company.”

A spokesperson for Major League Baseball said that the organization is excited to take an ownership position in one of the “most iconic brands in sports” and further build on the Rawlings legacy.

“We are particularly interested in providing even more input and direction on the production of the Official Ball of Major League Baseball, one of the most important on-field products to the play of our great game,” Chris Marinak, MLB’s executive vice president for strategy, technology and innovation said.

The New Jersey Economic Development Authority (NJEDA) approved $27 million in tax incentives for Newell Brands over a 10-year period in 2016 to help offset costs associated with establishing its new global headquarters at Waterfront Corporate Center III on River Street in Hoboken.

• See related article: Newell Brands Moving Corporate HQ to Hoboken, Will Get $27M Tax Break

Learn more about posting announcements or events to your local Patch site here. Send local news tips and correction requests to eric.kiefer@patch.com

Photo: YouTube/Rawlings

Don’t forget to visit the Patch Hoboken Facebook page here.