Newell Rubbermaid to sell Little Tikes toys unit

Newell Rubbermaid to sell Little Tikes toys unit

Newell Rubbermaid to sell Little Tikes toys unit

The Atlanta-based company said the deal is expected to close in the fourth quarter, pending regulatory approval and the consultation of trade unions and employee groups in certain affected European countries.

Little Tikes, whose headquarters and largest manufacturing facility are in Hudson in northeast Ohio, makes children's toys, furniture and related items for consumers. It brought in about $250 million in revenue for Newell Rubbermaid in 2005.

It's best known product is the red and yellow Cozy Coupe Car, which celebrated its 25th anniversary in 2004.

Little Tikes was founded in 1970. In 1984 it became a part of Rubbermaid Inc., which in 1999 was acquired by Newell Inc. to become Newell Rubbermaid.

MGA Entertainment, based in Van Nuys, Calif., is a family and children's entertainment company. It makes toys and games, dolls, consumer electronics and sporting goods, among other things.

Newell Rubbermaid in recent years has been restructuring its business, discontinuing or selling some operations so it can focus on others.

The company expects to record a net gain of $15 million to $25 million in the fourth quarter related to the Little Tikes sale. But, as a result of reclassifying Little Tikes as discontinued operations in the third quarter, full-year earnings per share from continuing operations, excluding charges, are expected to decline by 3 cents to 4 cents, Newell Rubbermaid said.

The company said it is still maintaining its third quarter and fiscal year 2006 earnings guidance issued in July.

Shares of Newell Rubbermaid rose $1.64, or 6.1 percent, in trading Monday to close at $28.64 on the New York Stock Exchange.