Newell Rubbermaid
Industryweek 9910 121415newellrubbermaidjarden

Newell Rubbermaid Sharpies Deal to Buy Jarden

Dec. 14, 2015
For a reported $13.2 billion price tag, Coleman, Crock-Pot, Mr. Coffee and Yankee Candle are now in the same Rubbermaid container with Sharpie, Calphalon and loads of other familiar brand names.

Newell Rubbermaid is buying rival Jarden in a $13.2 billion cash-and-stock deal that creates a global consumer goods giant, the U.S. companies announced Monday.

Newell Rubbermaid, makes Rubbermaid storage containers, Sharpie pens and Calphalon cookware, while Jarden’s brands include Coleman tents, Yankee Candle candles, AeroBed inflatable mattresses, Crock-Pot cookers and Mr. Coffee coffeemakers.

Newell Rubbermaid said the combination of the two companies into the new Newell Brands would create a powerful portfolio of strong global brands with $16 billion in annual revenues.

“The scale of our combined businesses in key categories, channels and geographies creates a much broader canvas on which to leverage our advantaged set of brand development and commercial capabilities for accelerated growth and margin expansion,” Newell Rubbermaid president and CEO Michael Polk said.

Newell Rubbermaid estimated the merger will yield about $500 million in cost synergies over four years, followed by “strong double-digit” earnings per share growth.

Under the terms of the deal, Jarden shareholders will receive for each share they own $21 in cash and 0.862 shares of Newell Rubbermaid. Based on Newell Rubbermaid’s closing share price on Friday, the acquisition offer represents a 24% premium to Jarden’s share price average over 30 days as of Friday.

The companies expect the transaction will close in the second quarter of 2016, dependent on shareholder and regulatory approvals. Polk will be CEO of Newell Brands and the new company’s board of directors will have 13 members, including three representatives of the Jarden board.

Shares in Newell Rubbermaid tumbled 8.2% to $41.59 in opening trade Monday, while Jarden shares rose 2.2% to $53.81.

Copyright Agence France-Presse, 2015

Popular Sponsored Recommendations

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Simplify Partner Engagement: A Guide for Manufacturers

Sept. 11, 2023
Design a winning partner program. Make selling faster and easier for partners, to increase mutual success with the help of automation. Download this guide to learn more about ...

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!