Newell Selling Rawlings Sporting Goods To Private Equity Firm, MLB
New Jersey-based Newell Brands announced it has "agreed to sell" St. Louis-based Rawlings Sporting Goods Company to L.A. private equity firm Seidler Equity Partners, according to Brian Feldt of the ST. LOUIS POST-DISPATCH. MLB "will co-invest with SEP in the deal," which is worth approximately $395M. Rawlings "had revenue" of $330M last year, but Newell "announced plans in January to shed assets and close factories as it concentrates on nine core consumer divisions." Rawlings "employs about 150 people in the St. Louis area and 1,200 globally." Newell's deal with SEP is "expected to close by mid-July." Rawlings previously "made some custom baseball gloves at its plant in Washington, Mo., but no longer makes any baseball gloves" in the U.S. The factory "remains open." Newell said that it "expects the sale to result in after-tax proceeds" of about $340M, which the company will "use to pay down debt and repurchase shares" (STLTODAY.com, 6/5). The WALL STREET JOURNAL's Robert Barba noted Rawlings "joined Newell's fold as part of its acquisition" of N.Y.-based Jarden Corp., which closed in '16. In the years since the deal was consummated, Newell has "repeatedly missed sales goals and billions of dollars of market value have evaporated" (WSJ.com, 6/5).