Newell to sell Goody hair accessories business to ACON Investments

Private equity is picking up another noncore unit from Newell Brands, the household-goods group that has put several brands on the block.

ACON Investments said Aug. 13 that it was buying Goody Products from Newell. Terms weren’t disclosed.

Goody makes hair-styling tools and accessories, including brushes, banana clips and scrunchies. The number of jobs included in the sale to ACON is unclear.

The company was projected to produce about $32 million of Ebitda this year, the Wall Street Journal reported in March. Goody’s 2017 net sales were about $115 million.

Newell Brands in January said it planned to explore strategic options for its smaller consumer businesses, including Rawlings Sporting Goods, Goody, Rubbermaid Outdoor and U.S. Playing Cards.

Newell, Hoboken, New Jersey, said it was selling the units to accelerate its transformation, improve its operational performance and enhance shareholder value.

The company had come under pressure from Starboard Value, which launched a campaign to replace Newell’s board. Starboard and Newell have agreed to end their months-long proxy fight, Reuters reported in April.

Newell said sales of the units would produce about $6 billion in net proceeds after taxes, the WSJ said. Once the divestitures are done, Newell is expected to have $11 billion in annual revenue, down from $14 billion in 2016, the WSJ said.

Goody is the latest Newell unit to sell to PE.

In May, Novolex Holdings, a Carlyle Group portfolio company, inked the $2.3 billion buy of Waddington Group from Newell. Waddington is the Covington, Kentucky, maker of disposable cutlery and drinkware.

Another deal followed in June when Seidler Equity Partners, along with Major League Baseball, agreed to buy Rawlings for about $395 million. Rawlings, a sporting-goods maker, is known for its baseball gloves.

Newell launched the Goody process in May. Nick Pavlidis and Lauren Bjerke of Robert W Baird advised on the process.

For ACON, the investment comes just months since the firm’s investment in True Value Co, the hardware retailer. ACON acquired a 70 percent stake in True Value’s operating company, the Chicago Tribune said.

ACON, Washington, invests in the U.S. and Latin America. Sectors of interest include healthcare, energy, industrials as well as consumer and retail.

It closed its last U.S. flagship fund on $1.07 billion in 2017. ACON’s fourth Latin America Opportunities pool collected $515 million in 2014.

In June, ACON and Humus Capital acquired a majority of Biosidus, an Argentine maker of biosimilar pharmaceuticals.

ACON has posted exits this year. It sold Hidrotenencias SA to EnfraGen Spain SA, a unit of Glenfarne Group LLC, in July. In March, it sold Fiesta Mart to Bodega Latina Corp, which does business as El Super.

Executives for ACON and Newell declined comment.

Action Item: Contact Michael Polk, Newell’s CEO, at +1 770-418-7000