Jarden To Acquire Yankee Candle For About $1.75 Bln In Cash

(RTTNews) - Consumer products company Jarden Corp. (JAH) Tuesday said it has entered into a definitive agreement to acquire scented candle firm Yankee Candle Investments LLC for about $1.75 billion in cash, subject to working capital and other adjustments. The transaction is expected to be accretive by 10 percent to adjusted earnings per share, pre-synergies.

Jarden is buying Yankee Candle with a 43-year history, from a fund managed by private equity firm Madison Dearborn Partners, LLC.

According to Jarden, the deal will help it to extend its portfolio of market-leading consumer brands and broaden its global distribution platform. In addition, Yankee Candle has many of the same attractive business characteristics as Jarden. The cross-selling and cross-channel opportunities created by the acquisition are expected to drive top-line growth.

Upon closing of the deal, Jarden would have pro forma net sales and adjusted EBITDA of around $7.7 billion and $1.0 billion, respectively, for the twelve months ended June 30, 2013, the firm said.

Jarden's adjusted gross profit and adjusted EBITDA margins for the year would have been 32.1 and 13.2 percent, respectively, compared to 28.9 and 11.8 percent, respectively, on a standalone basis, Jarden said.

Martin Franklin, Jarden's founder and executive chairman stated, "We are delighted to announce this acquisition, which is consistent with our more than ten-year track record of success in acquiring leading consumer brands synonymous with their niche categories. The iconic Yankee Candle brand is a natural extension of our existing portfolio and of our Branded Consumables business segment."

The deal, which is expected to close early in the fourth quarter of 2013, is subject to customary closing conditions and regulatory approvals.

Jarden's expects to fund the transaction with cash on hand, common equity and the balance through a mix of bank debt and bonds.

JAH closed Monday's regular trading at $42.95 on the NYSE.