Sanford Parent To Acquire Drinkware Maker
No Purchase Price Was Disclosed
Newell Rubbermaid, parent company of Top 40 supplier Sanford Business-To-Business (asi/84833), has signed an agreement to acquire the assets of drinkware maker bubba brands inc. Newell is buying bubba from In Zone Holdings, although no purchase price was disclosed. “The acquisition of bubba further strengthens our position as a leader in one of the fastest-growing consumer durables categories in North America,” said Michael Polk, president and CEO of Newell Rubbermaid. “We are excited to add this innovative brand to the portfolio.”
Newell expects the bubba brands deal to generate $50 million in sales this year, while expanding its drinkware technology and on-the-go thermal offerings. In July, Newell announced it had purchased mug and water bottle maker Ignite Holdings LLC, which sells its popular products under the brand names Contigo and Avex. Ignite has increased its sales by 35% annually over the past four years.
“In combination with the Contigo, Avex and Rubbermaid brands, the agreement to acquire bubba represents a tremendous opportunity to strengthen our growth agenda as we drive our growth game plan strategy into action,” said Polk.
The deal, which is likely to close this month, provides expansion potential for bubba’s line of tumblers, sport bottles, sport jugs and kids’ drink bottles, as well. “This acquisition will further position bubba as a leader in the industry, and will give the brand global reach and an opportunity for Newell Rubbermaid to broaden and grow the drinkware category,” said Gunnar Olson, president and CEO of bubba brands.
Newell’s purchase of bubba is being financed through organic cash flow and available borrowings. In its most recent earnings period, Newell posted second-quarter net sales of $1.52 billion, up 3.1% year-over-year.