Newell Rubbermaid buying Jarden in cash-and-stock deal

In a statement released on December 14, Michael B. Polk, Newell Rubbermaid President and CEO stated, “The combination of these two great companies creates a $16-billion consumer goods company with incredible potential to grow and create value”.

The deal is a bet that Newell can gain efficiency and clout from Jarden’s more than 100 far-flung brands, ranging from Oster appliances and K2 skis to Yankee Candle. Thanks to Jarden’s meteoric expansion, Franklin a year ago received $118 million, the largest sum ever paid to the head of a publicly traded company based in Palm Beach County, according to Palm Beach Post research.

Jarden’s shares were up 1 percent at $53.30 in early afternoon trading, far below the offer price, while Newell’s stock was down 10.5 percent at $40.51. Jarden Corp. stock jumped four percent after the news. Jefferies initiated shares on September 28 with “Buy” rating. The California-based Capital International Ltd Ca has invested 2.7% in the stock.

Newell’s list of brands will be longer than that of larger rival Procter & Gamble-the maker of Tide detergent and Pampers diapers past year began shedding businesses (paywall) with an eye to trimming its roster of brands down to about 75.

The effect on Newell’s 900-person headquarters in suburban Atlanta is yet unclear.

The transaction is expected to close in the second quarter of 2016 subject to shareholders’ and regulatory approvals, and other customary closing conditions. Spokeswoman Nicole Quinlan said those plans have not changed.

“Scale does matter. It means we become a lot more important – that means we get the opportunity to have more long-term conversations about the categories with retailers, and it means we have the opportunity to talk to them how to build category with shoppers.”

“Many of the synergies we expect are non-people related”.

Out of 15 analysts covering Newell Rubbermaid Inc. He will also be responsible for the creation of a number of enterprise-wide capabilities, including Design, Innovation, Insights, eCommerce, and Direct-to-Consumer commerce. But Newell’s brand count will still be well below that of Unilever, which has more than 1,000 brands around the world. The ratio increased, as 34 institutions have sold all the shares of Newell Rubbermaid Inc. that they owned while 166 funds have taken shares off the table.

“There are cross opportunities really that you don’t intuitively think about until you unpack this”, Polk said.

Newell Rubbermaid Inc.is a marketer of consumer and commercial products. Going back to March 12, 2015, shareholders of Newell Rubbermaid Inc. have witnessed 0 insider buys, and a total of 2 selling transactions equating to a net activity of approximately $277,466.

Newell Rubbermaid agreed Monday to buy Jarden Corp.’s hodge-podge lineup of 120 stalwart consumer brands – including Mr. Coffee, Marmot and Rawlings – to mix and match with its own parade of familiar household names – Sharpie, Contigo and Elmer’s – in a deal it values at $15.4 billion.

Mr Polk said the deal would be financed by issuing about $5bn in new debt and 221m new shares.