Newell Brands leaps on sale of its home security business

Resideo Technologies

07/02/2022 13:54

** Shares of Sharpie pen maker  NWL.O  up as much as 2.63%
at $21.89 premarket 
    ** Co to sell the Connected Home & Security (CH&S) business
to security solutions provider Resideo Technologies Inc  REZI.N 
 urn:newsml:reuters.com:*:nBw62Fglga 
    ** The CH&S business, based in Aurora, Illinois, produces
and distributes smoke and carbon monoxide combo alarms, fire
suppressants, fireproof safes and other home safety products 
    ** In 2021, net sales for CH&S was ~$395 mln 
    ** Gross proceeds from divestiture are expected to be $593
million - NWL
    ** Co's board has also authorized a $375 mln share
repurchase program
    ** Says transaction expected to have neutral impact on
normalized EPS in 2022
    ** Stock down ~2% YTD, as of last close 

 (Reporting by Rithika Krishna in Bengaluru)
 ((Rithika.Krishna@thomsonreuters.com; Twitter: https://twitter.com/rithika_krishna;))