Consumer and commercial products company Newell Brands Inc. on Feb. 22 unveiled its post-acquisition transformation initiatives, which include simplifying its portfolio and operations.
The company said it expects to have nine core consumer divisions after a series of potential divestitures. The remaining businesses are expected to benefit from a more than 50% reduction in commodity exposure, higher e-commerce penetration, and improvement in gross and operating margins.
The company's divestiture plan is expected to generate approximately $6 billion after taxes. Approximately two-thirds of the proceeds will be used to reduce debt, the statement added.
Newell Brands plans to simplify operations through a 50% reduction of its global factory and warehouse footprint. The company also plans to consolidate 80% of its global sales on two enterprise resource planning platforms by the end of 2019.
The consumer goods company also reaffirmed its full-year 2018 forecast.