The recent announcement that Newell Rubbermaid Inc.'s Graco unit received a Quick Pick rating for one of its car seats from Consumer Reports could bode well for the conglomerate should it choose to sell the unit.
The Graco SnugRide (pictured at left) was one of only two of a dozen car seats to pass Consumer Report's tests, which were more rigorous than the standard National Highway Traffic Safety Administration tests.
The future of Graco was put into question last year when Newell Rubbermaid sold its toy business Little Tikes to MGA Entertainment Inc., best known for its Bratz dolls. Graco is one of its three remaining "home & family" businesses, which also include Calphalon cookware and Goody sportswear. In addition, Newell has a "home fashion" division, which includes Kirsch and Levolor window treatments. All five don't fit well with Newell's larger three divisions, which are primarily commercial oriented.
Consequently, the Consumer Reports news, which is bound to prompt eager parents to rush out and replace their existing car seats, could help Newell receive a higher premium from a potential buyer. —Matthew Wurtzel
See story about car seats from BusinessWeek
See story about Little Tikes from Dealscape
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