Jarden To Buy Yankee Candle Investments For About $1.75 Bln - Quick Facts

(RTTNews) - Global consumer products company Jarden Corp. (JAH) has reached a definitive purchase agreement to acquire Yankee Candle Investments LLC, a specialty-branded premium scented candle company in the U.S., from a fund managed by Madison Dearborn Partners, LLC, a private equity firm, for nearly $1.75 billion cash. According to Jarden, the acquisition would extend its portfolio of market-leading, consumer brands in niche, seasonal staple categories, whilst creating opportunities in cross-selling, broadening the global distribution platform, and deepening Jarden's talent bench.

Following the transaction closure, Jarden would have pro forma net sales and adjusted EBITDA of around $7.7 billion and $1.0 billion, respectively, for the year ended June 30, 2013. This transaction is expected to be accretive to Jarden's adjusted earnings per share by about 10%, pre synergies.

Jarden's Chief Executive stated, "Our complementary strengths and skillsets pave the way for new cross-selling opportunities, cross-brand collaboration, partnerships and cross-business support, accelerating revenue growth across our global platform and driving long-term shareholder value. Jarden's global presence, capabilities and scale will facilitate Yankee Candle's expansion into new markets and geographies to further drive top-line growth and profitability. At the same time, Yankee Candle's gross profit and EBITDA margins will enhance Jarden's overall margins."

The acquisition is expected to close early in the fourth quarter of 2013.