Newell Rubbermaid Inc. today announced it has entered into an agreement for the intended sale of its Little Tikes business unit to MGA Entertainment, Inc., a global family and children's entertainment company. Little Tikes is a global marketer and manufacturer of children's toys, furniture and related items for consumers.

"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," said Mark Ketchum, chief executive officer of Newell Rubbermaid .

The transaction is expected to close in the fourth quarter 2006, subject to completion of all required regulatory approvals, including consultation proceedings with works councils, trade unions and employee representatives in certain affected European countries, among other things. Financial terms of the agreement were not disclosed.

Little Tikes contributed approximately $250 million in revenue in 2005, reported in the company's Other segment. Little Tikes will be classified as discontinued operations, and in the fourth quarter the company expects to record a net gain of $15 to $25 million related to this transaction. As a result of reclassifying Little Tikes to discontinued operations in the third quarter, 2006 full year diluted earnings per share from continuing operations, excluding charges, are expected to decline by $0.03 to $0.04, split evenly between the third and fourth quarters. Despite this dilution, the company is maintaining its third quarter and fiscal year 2006 earnings and cash flow guidance issued July 27, 2006.