Newell Rubbermaid (NYSE: NWL) has agreed to acquire Technical Concepts Holdings LLC from Liberty Partners. No financial terms were disclosed for the deal, which is expected to close by the end of Q2. TCH is a
Newell Rubbermaid (NYSE: NWL) today announced it has signed a definitive agreement to acquire Technical Concepts Holdings, LLC, (“Technical Concepts”) a leading global provider of innovative restroom hygiene systems for several high-growth segments of the away-from-home (“AFH”) washroom category, for approximately $445 million. Technical Concepts' products include touch-free and automated health, wellness and odor control solutions, as well as proprietary refills, which are a key component of recurring revenue.
The transaction, which is subject to regulatory approval and customary closing conditions, is expected to close in the first half of 2008. It is anticipated to be neutral to earnings in 2008 and accretive in 2009. For the year ended Dec. 31, 2007, Mundelein, Ill.-based Technical Concepts reported net sales of approximately $137 million.
The acquisition of Technical Concepts will add substantial scale to Newell Rubbermaid's Commercial Products global business unit, creating a leading position in the $2.5 billion worldwide AFH washroom category. In addition, with approximately 40 percent of sales outside the
“Our Rubbermaid Commercial Products brand is a key engine of growth for Newell Rubbermaid,” said Larry McIsaac, president of Newell Rubbermaid's Commercial Products global business unit. “This acquisition fits our strategy to expand our core platforms into product categories where brands matter and customers place a premium on innovation.”
Added Jack Vresics, president and chief executive officer of Technical Concepts, “As a high-quality supplier able to meet all of the broad, technically advanced AFH washroom needs, we can even more rapidly accelerate our growth by leveraging the size, scale and channel relationships of Rubbermaid Commercial Products and Technical Concepts around the world.”
Newell Rubbermaid estimates there are 25 million public AFH washrooms around the world, with significant opportunity for additional penetration of Technical Concepts' systems. Amid an increasing public concern for hygiene and the transmission of infectious diseases, facilities managers for airports, educational institutions, commercial buildings and other spaces are installing washroom solutions to provide end-user peace of mind and reduce resource costs.
Technical Concepts and Rubbermaid Commercial Products share many of the same distribution channels and customer sets, providing the opportunity for meaningful improvements to customer service and continued growth. Technical Concepts generates revenue from products in the air care, skin care, surface care and touch-free categories, through the sales of fixtures, proprietary dispensers and associated refills. Known as a technology innovator, the company derives significant revenue from patented products and has several exciting new offerings in its development pipeline. Technical Concepts was founded in 1987 and has approximately 200 employees in six locations worldwide.