Newell Rubbermaid, Atlanta, announced on Monday that it will acquire Rye, New York-based Jarden, a rival company with multiple brands related to the promotional products industry, including Sunbeam, Rawlings and Coleman, for $15.4 billion.
USA Today reported that Newell Rubbermaid, which also makes Sharpie, Paper Mate and Irwin products, is purchasing Jarden for a combination of cash and stock. When excluding convertible debt, the deal totals $13.2 billion.
Moving forward, the company will be known as Newell Brands, and is projected to have an annual revenue of approximately $16 billion. The companies said that the deal should close in the second quarter of 2016.
Newell Rubbermaid’s CEO Michael Polk will serve as CEO of the renamed company, and Newell Rubbermaid’s chief development officer Mark Tarchetti will become the company’s president. Martin Franklin, founder and executive chairman for Jarden, will join the board of Newell Brands.
“This combination is focused on driving shareholder value and accelerating the growth and profitability of both businesses,” James E. Lillie, CEO of Jarden, said in a statement. “Together, the business can move faster, globally leveraging the expertise and ability of the dedicated and talented employee base.”
According to Quartz, the deal will increase Newell Rubbermaid’s current brand portfolio from 28 brands to more than 150, making Newell Brands list of brands larger than that of its competitor Procter & Gamble.
For more information on Newell Rubbermaid, visit www.newellrubbermaid.com.
