Newell Brands shares jump 3.5% on news to sell businesses for $2.5 billion in proceeds
Newell Brands Inc.'s shares soared 3.5% in premarket trade Wednesday, after the owner of brands including Paper Mate and Sharpie said it is selling its Pure Fishing and Jostens businesses for total proceeds of about $2.5 billion. The company is selling Pure Fishing to private-equity firm Sycamore Partners for $1.3 billion. Pure Fishing sells fishing tackle, lures and rods and owns a portfolio of brands including Abu Garcia. The business had about $556 million of sales in 2017. Newell said it is selling Jostens, a provider of yearbooks, publications and other products in the academic field, to Platinum Equity for about $1.3 billion. Jostens had sales of $768 million in 2017. The deals are expected to close in the fourth quarter. Newell shares have fallen 35.4% in 2018, while the S&P 500 has gained 3.1%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.