LONDON, UK / ACCESSWIRE / February 12, 2018 / Active-Investors.com has just released a free research report on Newell Brands Inc. (NYSE: NWL) ("Newell"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=NWL as the Company's latest news hit the wire. On February 09, 2018, the Company acknowledged that its investor, Starboard Value and Opportunity Master Fund Ltd ("Starboard"), has sent a notice informing it about Starboard's intention to nominate 10 candidates to contest for Board seats during the Company's 2018 Annual Meeting of Shareholders. Starboard and its associates own less than 5% stake in Newell. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Newell Brands most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Response to the Board Nominations from Starboard
Newell issued an official statement confirming the receipt of the notice of nominations for 10 Board seats from Starboard. The Company has agreed to allow its Nominating/Governance Committee to look into the eligibility of Starboard's nominees in the best interest of the Company and its shareholders. The committee will file its recommendations with the US Securities and Exchange Commission (SEC) in due course. However, the Company has come out strongly in support of its existing Board members and management team. Newell's Board includes nine members out of which eight are independent directors. The Company is confident of the guidance and the expertise that they bring to the table. The Company has also informed its shareholders that they do not need to take any action on this matter at present.
Newell Brands came into existence with the merger of Newell Rubbermaid and Jarden Corp. in April 2016. Since then, the Company's management has taken several actions which have ensured that the Company is on track to continue its growth streak till FY21. In these two years since the merger, the Company has managed to increase its market share despite an adverse retail environment; realized over $550 million in terms of cost synergies and savings; generated an operating cash flow of nearly $2.8 billion; reduced its debts by $3.4 billion since April 16, 2016; reorganized its business to include four strategic acquisitions and nine divestitures; and increased shareholder value by $900 million via share repurchases and dividends.
Newell has reiterated that it is working diligently towards achieving the goals set as per the transformation plan it had outlined in January 2018. The transformation plan had included various steps and measures to ensure an improvement in operational performance and enhance shareholder value. Some of the steps included focusing on the core nine consumer divisions who have combined net sales of approximately $11 billion and EBITDA of $2 billion, and explore strategic alternatives for all its other non-core businesses. These steps were expected to result in a less complex organization structure - a 50% reduction in its global factory, warehouse footprint, and customer footprint. The Company's other goals under the transformation plan included the delivery of over $700 million in annual incremental cost savings till 2021; investment in innovation, design, and ecommerce to increase market share; use funds from divestments to pay off debt; and use cash balance for increasing shareholder value by way of share repurchases and a dividend payment of $0.23 per share every quarter.
Newell believes that its existing nine Board members are well equipped to execute the Company's business and take decisions that will help the Company achieve its goals, and at the same time increase value for all shareholders.
Proxy War with Starboard
Reports from industry insiders and media suggests that Starboard's current action is aimed at replacing the entire Board of Newell as well as its Chief Executive Officer (CEO), Michael Polk. It is speculated that former executives of Jarden have joined hands with Starboard. They are planning to bring in Jim Lillie, the former CEO of Jarden, to replace Polk; and place Martin Franklin, the former Chairman of Jarden, as the Chairman of the Board of Newell. In January 2018, Ian G.H. Ashken, Domenico De Sole, and Martin Franklin resigned from their Board positions in Newell. Of these, Ashken and Franklin were former Board members of Jarden and were disappointed with the direction and performance of Newell and therefore quit the Company's Board. The Company's shares have fallen nearly 40% in the last one year. Starboard and its partners attribute this decline in share price to the inability of Newell's current Board and management team in executing business plans to fuel the growth of the Company. They believe that if Franklin and Lillie were to lead Newell, it would be able to match Jarden's success story before its merger.
About Newell Brands
Headquartered in Hoboken, New Jersey, Newell is a leading global consumer goods Company. The Company's products are found in 93% of US households, with 85% of its sales coming from brands that are No. 1 or No. 2 in their categories. Leading brands of the Company include Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer's®, Coleman®, Jostens®, Marmot®, Rawlings®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®, Rubbermaid®, Contigo®, First Alert®, and Waddington and Yankee Candle®.
About Starboard Value
New York-based Starboard is an investment adviser with a focused and fundamental approach to investing in publicly-traded U. Companies. Starboard invests in deeply undervalued Companies and actively engages with management teams and boards of directors to identify and execute on opportunities to unlock value for the benefit of all shareholders. The firm has a team of over 25 professionals with years of experience in their areas of expertise.
Stock Performance Snapshot
February 09, 2018 - At Friday's closing bell, Newell Brands' stock fell 1.07%, ending the trading session at $27.61.
Volume traded for the day: 23.25 million shares, which was above the 3-month average volume of 9.16 million shares.
After last Friday's close, Newell Brands' market cap was at $13.68 billion.
Price to Earnings (P/E) ratio was at 10.67.
The stock has a dividend yield of 3.33%.
The stock is part of the Consumer Goods sector, categorized under the Housewares & Accessories industry. This sector was up 0.5% at the end of the session.
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