Nova in $214m hardware deal

Nova Capital, a specialist acquirer of corporate and private equity portfolios, plans to buy five home improvement and hardware brands from Newell Rubbermaid.

Nova Capital expects to acquire five companies from Newell Rubbermaid’s Hardware group for $214 million, according to a statement from the firm. The acquisition has not closed yet and is subject to customary conditions.

The brands include decorative company Amerock, window and door parts-producer Ashland, Bulldog hardware specialist and Drapery Hardware.  Nova also acquired Shur-Line, the original paint roller producer, according to the statement.

“We view these as five strong brands and businesses that have not been core to Newell”, David Jacobs, Nova investment partner, told Private Equity International. These companies have growth potential, despite not having performed as well recently, Jacobs added. 

Jacobs: Nova sees opportunities
in legacy funds

 
Jacobs, who previously headed Deutsche Bank’s consumer retail and business services group, will join the boards of the businesses. Nick Morrisroe will maintain his role as the current vice president and general manager of the combined businesses.
  
Earlier this year, Nova opened an office in Chicago — it’s first in the US. Its others are in London and Toronto.

“There’s substantial opportunity in the market, particularly in North America. On the private equity side, the opportunity is in the legacy funds,” Jacobs said.

Founded in 2002, Nova specialises in acquiring corporate and private equity portfolios. Nova usually buys all of a company’s portfolio brands of the same sector at the same time. This makes it easier on the seller, Jacobs said. 

“We don’t focus much on the division but we focus our strengths and resources on each business,” Jacobs said about brands the firm has acquired.

Nova currently manages 29 companies that operate in North America, Europe and Asia, according to the statement.