Newell Brands To Divest Connected Home & Security Business To Resideo Technologies

(RTTNews) - Newell Brands Inc. (NWL) has signed a definitive agreement to sell the Connected Home & Security business to Resideo Technologies, Inc. (REZI). The CH&S business, based in Aurora, Illinois, is a manufacturer in the U.S. home safety market. Gross proceeds from the divestiture are expected to be $593 million.

Newell Brands expects to use the after-tax proceeds toward both debt paydown and share repurchase. The Board has authorized a $375 million share repurchase program, effective immediately.

Newell Brands expects the deal to have an approximately neutral impact on its normalized earnings per share in 2022, considering the anticipated use of proceeds.

Separately, Resideo Technologies said, for the quarter ended December 31, 2021, its preliminary expectations include revenue of $1.454 billion, gross margin of 27.2% and operating profit of $141 million.