Brand delusions

9 Feb 2018 By Tom Buerkle

Starboard wants to replace the Elmer’s-to-Rubbermaid group’s board with a slate led by former managers of Jarden, which it bought two years ago. Newell has failed to hit targets, but Jarden’s rollup model was running out of gas too. A breakup would be a better activist ambition.

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Newell Brands on Feb. 9 said it had received notice from activist investor Starboard Value that it intends to nominate 10 candidates to replace the consumer-products company’s board at its annual shareholder meeting this spring.

Starboard’s slate is led by Martin Franklin, the former chairman of Jarden, and Ian Ashken, who resigned from Newell’s board on Jan. 25, the Wall Street Journal reported, citing people familiar with the matter. The group wants to install Franklin as chairman and Jim Lillie, the former chief executive of Jarden, as Newell’s CEO, it said.

Newell acquired Jarden for more than $15 billion in 2016. On Jan. 25, Chief Executive Michael Polk announced Newell was exploring strategic options for its industrial and commercial businesses and smaller consumer brands such as Rawlings sporting goods and U.S. Playing Cards. He said the company intended to focus on nine core consumer-product divisions with some $11 billion in revenue and $2 billion in earnings before interest, tax, depreciation and amortization.

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