Newell (NWL) To Boost Growth With New Global Headquarters

Newell Brands Inc. (NYSE:NWL) announced plans to set up its new international headquarters at Hoboken, NJ. Alongside, in an effort to better serve the newly modified company, Newell revealed its intentions of investing in another hub and enhancing its e-commerce operations in the same region.

Newell Brands derived its name and structure after the former company, Newell Rubbermaid Inc. merged with Jarden Corp. last month, leading to the creation of an entity worth $16 billion.

The combined firm includes brands like Mr. Coffee machines, Rawlings baseballs, PaperMate pens, Rubbermaid containers, Graco baby strollers and others, under the same roof. This combination is expected to be a complementary fit, as it will help both companies expand their operations further.

Thus, the new headquarters, which is expected to be ready for possession in fall 2016, will likely boost Newell Brands’ growth. This is because it has separate facilities specially designed for every function – including designing and e-commerce. However, Newell will continue to maintain its existing hubs in Atlanta, Boca Raton and Norwalk, along with the design center in Kalamazoo, MI.

Apart from the merger with Jarden, the company has always been keen on strengthening its portfolio by investing in key segments, reducing activities with marginal profitability, and exiting certain businesses and markets. This is evident from Newell’s acquisition of Elmer’s Products, Ignite Holdings LLC and bubba brands inc.

Further, to curtail its non-performing assets and simplify its portfolio structure, the Sharpie producer sold its medical cart business to Caspa Solutions, its Endicia online postage business to Stamps.com, and is on track to sell its Levolor and Kirsch window coverings brands. Also, it plans to remove the Calphalon retail outlet stores and kitchen electrics businesses.

We believe that these constant endeavors will help the Zacks Rank #1 (Strong Buy) company sharpen its focus on creating a faster growing, higher margin and more profitable entity.

Stocks to Consider

Other well-ranked stocks in the same industry include Energizer Holdings, Inc. (NYSE:ENR) and Tupperware Brands Corporation (NYSE:TUP) , each with a Zacks Rank #1, and Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) , with a Zacks Rank #2 (Buy).

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