Newell Rubbermaid Sheds Little Tikes Business

As part of a restructuring effort, Newell Rubbermaid Inc., maker of Sharpie pens and Rubbermaid trash cans, is selling its Ohio-based Little Tikes children's toys and furniture business to MGA Entertainment Inc. for an undisclosed price. The deal is expected to close in the fourth quarter of 2006, pending regulatory approval and the consultation of trade unions and employee groups in certain affected European countries. "We have been narrowing our portfolio to focus on businesses that are best aligned with our strategies of differentiated products, best cost and consumer branding. This transaction is consistent with that focus," says Mark Ketchum, chief executive officer of Newell Rubbermaid. Little Tikes brought in about $250 million in revenue for Newell Rubbermaid in 2005. The purchaser, MGA Entertainment, is a family and children's entertainment company that makes toys and games, dolls, consumer electronics and sporting goods.