Newell Rubbermaid Buys Jarden

This mega acquisition valued at nearly $16 billion creates a new combined company. 

Newell Rubbermaid has acquired Jarden Corporation and will create a combined entity that is projected to become a $16 billion consumer goods company. The deal will combine the two companies’ complimentary brand portfolios to create Newell Brands.

Jarden is listed as No. 54 on License! Global’s annual Top 150 Global Licensors report, with an estimated $1 billion in retail sales of licensed merchandise worldwide in 2014. Jarden includes such well-known brands in its portfolio as Nuk, Yankee Candle, Bicycle, Diamond, Breville, Crock-Pot, Margaritaville, Oster, Mr. Coffee, Sunbeam, Coleman, K2, Jostens and many more.

Newell Rubbermaid owns such brands as Paper Mate, Sharpie, Elmers, Rubbermaid, Graco, Baby Jogger, Goody, Lenox and more.

“The combination of these two great companies creates a $16 billion consumer goods company with incredible potential to grow and create value,” says Michael B. Polk, president and chief executive officer, Newell Rubbermaid. “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.”
Under the terms of the transaction, Jarden shareholders will receive $21 in cash for each Jarden share and 0.862 shares of Newell Rubbermaid stock, with an implied total of $60 per share. The transaction will be funded by cash on hand, debt and equity issued to Jarden shareholders. Newell Rubbermaid anticipates to earn approximately $500 million over four years on the purchase.

Polk will lead Newell Brands as CEO, with Mark Tarchetti, current chief development officer, Newell Rubbermaid, serving as president of Newell Brands. Bill Burke, current chief operating officer, Newell Rubbermaid, will lead the legacy Jarden business once the sale is final.