UPDATE: Newell to Acquire Jarden

The deal is valued at between $13 billion and $15.4 billion
December 14, 2015David Gill

Newell RubbermaidATLANTA-Newell Rubbermaid has entered into an agreement to purchase Jarden Corp., which would create a $16 billion consumer products giant.

The equity value of the deal will be about $15.4 billion, according to a company source who asked not to be named. Under the terms of the agreement, Jarden shareholders will receive $21 in cash and 0.862 shares of Newell Rubbermaid stock for each of their Jarden shares at closing, according to a joint Newell-Jarden statement.

Based on Newell Rubbermaid’s closing share price as of Dec. 11, this would amount to a value of $60 per share, representing a 24 percent premium over Jarden’s 30-day volume weighted average share price as of Dec. 11. The deal is expected to close in the second quarter of 2016.

The combined entity will be known as Newell Brands and the CEO will be Michael Polk, now president and CEO of Newell Rubbermaid. Martin Franklin, co-founder and executive chairman of Jarden, and Ian Ashken, co-founder, vice chairman and president of Jarden, will join the Newell Brands’ board, which will be chaired by Michael Cowhig, Newell Rubbermaid’s non-executive chairman.

Jarden3x2Jim Lillie, Jarden’s CEO, will take on a counseling role but will not be an executive at Newell Brands. “I want to congratulate Jim on his strong leadership of Jarden over the last twelve years and his work positioning the business for the opportunity ahead, and I look forward to working with Martin and Ian as we drive the new Newell Brands towards its aspiration of becoming one of the preeminent consumer goods companies in the world,” Polk said.

“This combination is focused on driving shareholder value and accelerating the growth and profitability of both businesses,” Lillie said. “Together, the business can move faster, globally leveraging the expertise and ability of the dedicated and talented employee base.”

The deal would put such notable housewares brands as Sunbeam, Oster and Mr. Coffee from Jarden with Rubbermaid, Calphalon and Kirsch under one company.

Among other key executives, Joe Arcuri will assume the role of chief commercial officer of Newell Rubbermaid, and Richard Davies will become chief development officer, Newell Rubbermaid, both effective Jan. 1, 2016.

David GillDavid Gill | Contributing Editor

David Gill is a contributing editor to HFN.


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