Tags: Newell Rubbermaid | Jarden | deal | merger

Newell Rubbermaid Agrees to Acquire Jarden for $15.4 Billion

Monday, 14 Dec 2015 10:44 AM

Newell Rubbermaid Inc. agreed to buy Jarden Corp. for about $15.4 billion, creating a consumer-products giant with a sprawling portfolio of brands.

The new company, called Newell Brands, will have $16 billion in sales, according to a statement Monday. Jarden holders will receive cash and stock valued at about $60.03 a share -- 24 percent higher than the closing price on Dec. 4, the last trading day before media reports said merger talks had begun.

The deal is a bet that Newell can gain efficiency and clout from Jarden’s more than 100 far-flung brands, including everything from Oster appliances and K2 skis to Yankee Candle. Newell Rubbermaid Chief Executive Officer Michael Polk, who will run the combined entity, is aiming to squeeze $500 million in costs out of the business within four years.

The transaction creates “a much broader canvas” for cultivating brands and expanding them around the world, Polk said in the statement.

Jarden’s shares climbed as much as 8 percent to $56.92 in early trading after the takeover was announced. The stock was already up 10 percent this year, lifted by earlier reports that the Newell deal was under way.

When the merger is completed, Newell stockholders will own 55 percent of the combined company. It will build on Newell’s existing stable of brands, which includes Graco strollers, Sharpie pens, Rubbermaid and many others.

Dealmaking Spree

The transaction caps a 14-year run for Jarden Chairman Martin E. Franklin, who used acquisitions to build the company’s vast array of brands. The current business traces its roots to 2000, when Franklin and long-time partner Ian Ashken tried and failed to acquire Alltrista Corp., a troubled manufacturer of plastics. After pushing for seats on the board, Franklin was named CEO and Ashken took the role of the chief financial officer. That company became Jarden. Franklin and Ashken will both serve on the board of the combined company.

Jarden has been described as a publicly traded private- equity firm because of its penchant for buying brands and improving them. It has acquired about 30 companies since its founding in 2001, with the latest coming in October when it agreed to pay about $1.5 billion for Visant Holding Corp., which owns the school-memorabilia maker Jostens.

Newell Rubbermaid, meanwhile, was formed when the company bought Rubbermaid Inc. for about $6 billion in 1999. Newell and Jarden are looking to use the company’s new heft to attack markets such as baby products and kitchenware. The business will have annual adjusted earnings before interest, taxes, deprecation and amortization of more than $3 billion once the cost savings are realized, according to the statement.

(An earlier version of this story was corrected to fix the value of the deal.)

To contact the reporters on this story: Phil Serafino in Paris at pserafino@bloomberg.net; Thomas Mulier in Geneva at tmulier@bloomberg.net To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net; Benedikt Kammel at bkammel@bloomberg.net Paul Jarvis

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Newell Rubbermaid Inc. agreed to buy Jarden Corp. for about $15.4 billion, creating a consumer-products giant with a sprawling portfolio of brands.
Newell Rubbermaid, Jarden, deal, merger
Monday, 14 Dec 2015 10:44 AM
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