Sharpie pen maker Newell to buy Elmer's for about $600 mln
(Adds background, forecast, shares)
Oct 5 (Reuters) - Sharpie pen maker Newell Rubbermaid Inc said it would buy Elmer's Products Inc, owner of the popular school glue brand, for about $600 million.
The acquired business will be part of Newell Rubbermaid's writing business with Elmer's, X-Acto and Krazy Glue joining the company's Paper Mate, Sharpie, and Mr. Sketch brands.
Atlanta-based Newell said the deal is expected to close this year and add to adjusted earnings and operating margin in 2016.
Elmer's net sales for 2015 are projected to be about $240 million, Newell said on Monday.
The company is acquiring Elmer's from an affiliate of Berwind Corp, a family owned investment management company.
Reuters reported last month that Elmer's was exploring a sale.
Newell also said it would divest its Levolor and Kirsch window coverings brands from its decor business.
The company reiterated its full-year 2015 profit and revenue forecasts as it expects no impact related to either the Elmer's acquisition or the planned decor divestiture.
Newell's shares closed at $40.61 on the New York Stock Exchange on Friday.
(Reporting by Subrat Patnaik in Bengaluru; Editing by Savio D'Souza and Sriraj Kalluvila)
