Jarden Corporation acquires Yankee Candle for $1.75 billion
Home Accents Today Staff -- Home Accents Today, 9/3/2013 10:10:07 AM
Consumer products company Jarden Corporation has entered into a definitive purchase agreement to acquire Yankee Candle Investments LLC for about $1.75 billion, Jarden announced today.
Jarden's product portfolio includes such brands as Crock-Pot, Mr. Coffee and Sunbeam. The company is acquiring Yankee Candle from a fund managed by private equity firm Madison Dearborn Partners, LLC. The transaction is expected to be funded with cash on hand, common equity and the balance through a mix of bank debt and bonds, and is expected to close early in the fourth quarter of 2013, according to a press release.
"We are delighted to announce this acquisition, which is consistent with our more than 10-year track record of success in acquiring leading consumer brands synonymous with their niche categories," said Martin E. Franklin, Jarden's founder and executive chairman. "The iconic Yankee Candle brand is a natural extension of our existing portfolio and of our Branded Consumables business segment.
"As a successful, well-managed and well-invested business, Yankee Candle is a solid platform for us to leverage our proven, time-tested and portable brand-building approach and to drive additional value through investments in brand equity, product development and innovation. As our first significant acquisition since April 2010, Yankee Candle embodies all of the characteristics of our market-leading brands, while offering a compelling financial and strategic value proposition."
Jarden CEO James E. Lillie said the acquisition should enhance the company's financial performance and create new revenue drivers. "Our complementary strengths and skillsets pave the way for new cross-selling opportunities, cross-brand collaboration, partnerships and cross-business support, accelerating revenue growth across our global platform and driving long-term shareholder value," he said.
Harlan M. Kent, Yankee Candle's president and CEO, called the acquisition "a transformative milestone for Yankee Candle," which has built its brand and customer base over the past 40 years.
"Jarden is well known as a stable, long-term owner of businesses, and this will provide us with a perfect platform on which to grow," Kent said. "This acquisition provides us with the resources and scale necessary to drive our future success and will further strengthen our existing product development and distribution capabilities.
"Jarden's similar niche consumer strategy and complementary consumer portfolio will help to accelerate our expansion. I'd like to thank all of Yankee Candle's employees for their ongoing dedication to the business and hope they share in my excitement as we look forward to the next stage of our growth as part of the Jarden family."
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