Newell Rubbermaid Buying Parent of Rawlings Sporting Goods

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.

TEAMING UP: Jarden Brands rose after the consumer products maker agreed to be acquired by competitor Newell Rubbermaid.

The investigation concerns whether Jarden’s board of directors failed to adequately shop the Company and obtain the best possible value for Jarden’s shareholders before entering into an agreement with Newell Rubbermaid.

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Shares of Newell Rubbermaid Inc. dropped $2.42, or 5.3%, to $42.86 in premarket trading about an hour before the market open, while Jarden’s stock rose $2.81, or 5.3%, to $55.49.

Jarden’s brands include Coleman tents, Yankee Candle candles, AeroBed inflatable mattresses, Crock-Pot cookers and Mr. Coffee coffeemakers.

The combined entity will be known as Newell Brands and the CEO will be Michael Polk, now president and CEO of Newell Rubbermaid.

That’s a premium of about 25% over the opening price of Jarden shares on December 7, the day that news of the negotiations leaked to the Wall Street Journal. 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. Michael Cowhig, non-executive chairman of Newell Rubbermaid, will continue in that role for the combined business.

“Given the magnitude of the opportunity ahead, I’m delighted that Bill and Mark will continue their partnership working with Rich and the great talent that Jarden brings to the combination”. These leaders will ensure the development and full delivery of the existing Newell Rubbermaid business plan.

Barclays was the lead financial adviser to Jarden, while and UBS Investment Bank also advised the company.