Newell Rubbermaid buying Jarden, creating $16 billion consumer goods company | iNFOnews | Thompson-Okanagan's News Source
Subscribe

Would you like to subscribe to our newsletter?

Current Conditions Cloudy  1.0°C

Newell Rubbermaid buying Jarden, creating $16 billion consumer goods company

FILE - In this file photograph taken July 30, 2009, Rubbermaid containers are stacked at a store in Detroit. Newell Rubbermaid announced Monday, Dec. 14, 2015, it is buying Jarden Corp. in a cash-and-stock deal that creates a $16 billion consumer goods company. (AP Photo/Paul Sancya, File)
Original Publication Date December 14, 2015 - 4:10 AM

ATLANTA - Newell Rubbermaid is buying Jarden Corp. in a cash-and-stock deal worth about $13.2 billion.

The combined company will generate a mammoth $16 billion in revenue per year with brands such as Paper Mate, Sharpie, Elmer's, Rubbermaid, Calphalon, Lenox, Yankee Candle and Graco.

Jarden shareholders will receive $21 in cash and 0.862 shares of Newell Rubbermaid stock for each share they own. The implied total value is $60 per share.

Newell Rubbermaid shareholders will own about 55 per cent of the combined business. It said Monday that it expects annual cost savings of about $500 million over four years. The transaction is expected to immediately add to earnings per share.

Michael Polk, CEO of Atlanta-based Newell Rubbermaid, will serve as CEO of a company that will adopt the name Newell Brands. Mark Tarchetti, chief development officer at Newell Rubbermaid, will become president.

Three Jarden directors will join the Newell Brands board. They include Jarden founder and Executive Chairman Martin Franklin and Jarden co-founder, Vice Chairman and President Ian Ashken. The Newell Brands board will include 13 members. Michael Cowhig, non-executive chairman of Newell Rubbermaid, will continue in that role for the combined business. Jarden is based in Boca Raton, Florida.

The deal is targeted to close in 2016's second quarter. It still needs approval from shareholders of both companies.

Shares of Newell Rubbermaid Inc. dropped $2.44, or 5.4 per cent, to $42.84 in morning trading Monday while Jarden's stock rose $2.05, or 3.9 per cent, to $54.75.

News from © The Associated Press, 2015
The Associated Press

  • Popular kelowna News
View Site in: Desktop | Mobile