Tupperware Brands (TUP -0.76%) is selling its wares, and shareholders were very happy about that fact on Tuesday.
We're not talking the company's classic lineup of food storage containers. That morning, it announced that it is divesting one of its product lines, and investors expressed their approval by bumping the stock's price more than 16% higher on the day.
Tupperware is emptying the Nutrimetrics beauty business from its bowl. The company has reached agreement to sell it to privately held New Image Group. It disclosed neither the price nor the key terms of the deal. It also did not speculate on when the sale might close.
This divestment was hardly unexpected. It follows the jettisoning of other non-core assets, including fellow beauty lines Avroy Shlain and House of Fuller. The former was sold early last year, and the latter in the second quarter of this year.
In its press release trumpeting the sale, CEO Miguel Fernandez was quoted as saying that "We remain focused on executing on our turnaround plan, and the sale of our non-core assets, including Nutrimetics, aligns with this strategy by enabling the Company to increasingly focus on growing our core Tupperware brand."
"Our goal remains unchanged: to restore this iconic brand to sustained growth and deliver increased value to all stakeholders, he added. "This transaction represents yet another milestone along that path."
Although it's difficult to judge whether this was a good deal for Tupperware given the lack of provided specifics, investors didn't seem to mind. The specialty consumer goods company is clearly achieving its clear and sensible goal of paring down to its core competency, which has always been those durably popular food containers and related items.