Jarden To Acquire Waddington Group From Olympus Partners For $1.35 Bln

(RTTNews) - Consumer goods company Jarden Corp. (JAH) agreed Monday to acquire Waddington Group, Inc., a manufacturer and marketer of premium disposable tableware, from its private-equity owner Olympus Partners and other stockholders in a deal valued at about $1.35 billion.

The deal, subject to customary closing conditions and regulatory approvals, is expected to close in the third quarter of 2015.

"This acquisition should immediately enhance our financial performance and create exciting new revenue drivers. Our complementary businesses—further enhanced by our combined deep bench of management talent—lay the foundation for new cross-selling opportunities, cross-brand collaboration, and cross-business support," Jarden's CEO James Lillie said in a statement.

Jarden noted that its global presence, capabilities and scale will help Waddington's expansion into new markets and geographies to further drive top-line growth and profitability.

The deal provides a meaningful addition to Jarden's portfolio while creating opportunities in cross-selling, broadening the distribution platform particularly in the B2B category, and deepening Jarden's talent bench to drive top-line growth.

Waddington is expected to contribute about $800 million to 2016 revenues, and there will be meaningful revenue synergies, starting in 2016 and grow over time.

The deal is expected to be immediately add to Jarden's adjusted earnings per share in a small way in 2015 and by about 5 percent in 2016. It will also enhance overall EBITDA margins.

The company expects the deal to be funded through a combination of cash on hand, common equity and a mix of bank debt and bonds.

Jarden beat out other bidders in the last few days. Jarden had approached Olympus about buying Waddington more than three months ago, before the private equity owner started an auction.

Following the acquisition, Waddington will be reported as part of Jarden's Branded Consumables segment.

Covington, Kentucky-based Waddington Group manufactures and markets premium disposable tableware for commercial, foodservice and retail markets. It operates seventeen manufacturing facilities across the U.S., Canada, the U.K. and Ireland., with about 2,900 employees.

Waddington Group's President and CEO Mike Evans said, "This is a significant milestone for Waddington. Jarden is well known as a stable, long-term owner of businesses, and this will provide us with a strong platform upon which to continue to expand. This acquisition provides us with the resources and scale necessary to further strengthen our existing product innovation and distribution capabilities to drive top- and bottom-line growth."

JAH closed Friday's regular trading session at $52.31, up $0.17 on a volume of 1.0 million shares.