Newell Rubbermaid announced this week that it will acquire Baby Jogger Holdings Inc., a maker of strollers and other juvenile products, for about $210 million.
The Richmond, Va.-based company, which makes the City Mini stroller, is being sold by the private equity firm Riverside Co.
Newell Rubbermaid said the acquisition will complement its Graco stroller line.
This is the second major acquisition by Sandy Springs-based Newell Rubbermaid since July, when it announced it was acquiring Ignite Holdings LLC, the company behind the Contigo and Avex beverage container brands, from the private equity firm North Castle Partners for $308 million.
In October, the company announced it was acquiring bubba brands Inc., a maker of durable beverage containers, from In Zone Holdings Inc. The purchase price in the bubba brands deal was not disclosed.
Newell Rubbermaid had been shedding unprofitable businesses. The company said Baby Jogger, which is expected to have about $90 million in net sales this year, will be accretive to Newell Rubbermaid’s earnings in the first year.
Earlier this week, the National Highway Traffic Safety Administration said it had opened an investigation into the timeliness of Graco Children’s Products Inc.’s reporting of a safety defect in child seats. The federal agency said it took three recalls for Graco to include more than 6 million potentially defective car seats in its recall, and only after continued pressure from the NHTSA.
“We thoroughly analyzed all data related to the buckles and took the required actions to keep our consumers safe,” Graco said in a widely released statement. “We stand by our reputation on safety that far exceeds federal government requirements.”
Newell Rubbermaid acquired Graco as part of its acquisition of the Rubbermaid line of consumer household products in 1999. The company’s other brands include Calphalon cookware, Rolodex office products, Levolor blinds, Parker and Waterman writing instruments, Irwin and Vice-Grip tools, and Goody hair care accessories.
