It's rosy in Jarden for Yankee Candle
JARDEN, known for its Mr Coffee products, agreed to buy candle-maker Yankee Candle for $1.75bn (€1.33bn) after private equity owner Madison Dearborn Partners failed to sell for a higher price earlier this year.
US-based Jarden, which sells slow cookers and electric blankets, said yesterday it would fund the transaction with cash, common equity and bonds.
The acquisition of Yankee Candle, the largest scented candle company in the US, will bolster Jarden's branded consumables division, and adjusted cash flow on a pro-forma basis would have been about 25pc higher in the 12 months to the end of June 2013, Jarden said.
The deal is expected to be accretive to Jarden's adjusted earnings per share by approximately 10pc before synergies, Jarden added.
"Strategically, it fits well with Jarden's strategy of buying niche, seasonal, staple consumer brands, and should provide a number of cross-selling opportunities over time," Oppenheimer analyst Joseph Altobello wrote in a note.
Yankee Candle was acquired by Madison Dearborn for $1.6bn in 2006 and put up for sale earlier this year. In Ireland, Madison Dearborn also bought a large stake in Smurfit before selling it at a profit.