Newell Rubbermaid to buy Jarden, creating US$16B consumer goods company

ATLANTA -- Newell Rubbermaid is buying Jarden Corp. in a cash-and-stock deal worth about $13.2 billion.

The combined company will generate a mammoth $16 billion in revenue per year with brands such as Paper Mate, Sharpie, Elmer's, Rubbermaid, Calphalon, Lenox, Yankee Candle and Graco.

See Full Article

Jarden shareholders will receive $21 in cash and 0.862 shares of Newell Rubbermaid stock for each share they own. The implied total value is $60 per share.

Newell Rubbermaid shareholders will own about 55 per cent of the combined business. It said Monday that it expects annual cost savings of about $500 million over four years. The transaction is expected to immediately add to earnings per share.

Michael Polk, CEO of Atlanta-based Newell Rubbermaid, will serve as CEO of a company that will adopt the name Newell Brands. Mark Tarchetti, chief development officer at Newell Rubbermaid, will become president.

Three Jarden directors will join the Newell Brands board. They include Jarden founder and Executive Chairman Martin Franklin and Jarden co-founder, Vice Chairman and President Ian Ashken. The Newell Brands board will include 13 members. Michael Cowhig, non-executive chairman of Newell Rubbermaid, will continue in that role for the combined business. Jarden is based in Boca Raton, Florida.

The deal is targeted to close in 2016's second quarter. It still needs approval from shareholders of both companies.

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



Advertisements

Latest Economic News

  • Facebook tightens ad policies after 'Jew-hater' fiasco

    Economic CTV News
    NEW YORK -- Facebook is apologizing for letting advertisers use phrases like "Jew-haters" as a targeting criteria and for not noticing it until it was pointed out. The company is also tightening policies and tools that let businesses target advertisements to its 2 billion users, hoping to ensure that this doesn't happen again. Source
  • Ontario ministry searches Volkswagen offices in emissions scandal

    Economic CBC News
    The Ontario government executed a search warrant at the Volkswagen Canada offices on Tuesday as part of its investigation into the emissions scandal that rocked the company two years ago. The Ministry of the Environment and Climate Change charged Volkswagen AG with one count under the province's Environmental Protection Act last week. Source
  • What you need to know about the proposed small business tax changes

    Economic CTV News
    The federal government has been defending its proposed small business tax changes despite opposition from many of those who will be affected. Finance Minister Bill Morneau and Prime Minster Justin Trudeau have stood firm on the controversial plan, saying the tax changes are about making the system fair, rather than generating revenue for the government. Source
  • U.S. Fed announces a start to modestly reducing its bond holdings

    Economic CTV News
    WASHINGTON -- U.S. The Federal Reserve will begin shrinking the enormous portfolio of bonds it amassed after the 2008 financial crisis to try to sustain a frail economy. The move reflects a strengthened economy and could mean higher rates on mortgages and other loans over time. Source
  • Magna International suspends supply of parts to CAMI

    Economic CBC News
    Canadian autoparts giant Magna International announced Sunday that it has suspended the supply of parts to the CAMI auto plant in Ingersoll due to an ongoing strike at the facility. (Stacey Janzer/CBC) Autoparts maker Magna International announced Wednesday that it has suspended the supply of parts to CAMI, the Ingersoll auto manufacturing plant that's been crippled by a labour dispute. Source
  • Bombardier workers in Toronto walk out over Boeing dispute

    Economic Toronto Sun
    The union representing Bombardier’s production workers says employees at the company’s aerospace plant in Toronto will walk out Wednesday — a move meant to pressure Boeing to drop a trade complaint against Bombardier. Unifor national president Jerry Dias said in a statement that the rally is intended to give workers a voice during the ongoing dispute between the two companies. Source
  • Bombardier workers in Toronto to walk out over Boeing dispute

    Economic Toronto Sun
    The union representing Bombardier’s production workers says employees at the company’s aerospace plant in Toronto will walk out Wednesday — a move meant to pressure Boeing to drop a trade complaint against Bombardier. Unifor national president Jerry Dias said in a statement that the rally is intended to give workers a voice during the ongoing dispute between the two companies. Source
  • U.S. delays decision on Bombardier CSeries preliminary duties

    Economic CTV News
    MONTREAL - A U.S. Department of Commerce spokesman says the government will announce its decision on Boeing's request for preliminary duties against Bombardier's CSeries on Tuesday, a day later than it previously indicated. Industry analysts and the Montreal-based company expect preliminary countervailing duties will be imposed on aircraft deliveries to the United States. Source
  • Toys 'R' Us Canada granted creditor protection after U.S. parent begins bankruptcy proceedings

    Economic CTV News
    Toys "R" Us Canada says the struggles of the wider toy chain have been impacting its strong Canadian business. The toy retailer's Canadian subsidiary was granted creditor protection in the Ontario Superior Court on Tuesday, one day after Toys "R" Us started bankruptcy proceedings south of the border. Source
  • Toys 'R' Us Canada granted creditor protection

    Economic CTV News
    Toys "R" Us Canada says the struggles of the wider toy chain have been impacting its strong Canadian business. The toy retailer's Canadian subsidiary was granted creditor protection in the Ontario Superior Court on Tuesday, one day after Toys "R" Us started bankruptcy proceedings south of the border. Source