Jarden to Acquire Yankee Candle
RYE, N.Y.-Jarden Corporation, the housewares giant, has entered an agreement to purchase The Yankee Candle Company for approximately $1.75 billion.
Jarden will acquire Yankee Holding Corp. and The Yankee Candle Company from a fund managed by Madison Dearborn Partners, LLC for $1.75 billion and up to $55 million in additional cash earn-out payments based upon achievement of certain performance targets, subject to working capital and other adjustments, the companies said.
The deal will extend Jarden's portfolio of consumer brands in niche, seasonal staple categories, while creating opportunities in cross-selling and broadening its global distribution platform, according to Jarden. Jarden expects Yankee, which generated $319.1 million in net sales for the first six months of 2013, to expand its Branded Consumables segment to approximately 35 percent of combined sales.
"As a successful, well-managed and well-invested business, Yankee Candle is a solid platform for us to leverage our proven, time-tested and portable brand-building approach and to drive additional value through investments in brand equity, product development and innovation," said Martin E. Franklin, Jarden's founder and executive chairman. "As our first significant acquisition since April 2010, Yankee Candle embodies all of the characteristics of our market-leading brands, while offering a compelling financial and strategic value proposition."
Harlan Kent, president and CEO of Yankee, said joining Jarden enables both companies to share best practices, presents many cross-marketing opportunities and enables Yankee to continue to expands its international business and open more stores. "I am very proud of our Yankee Candle team and their proven ability to create scentsational customer experiences, and deliver industry leading financial performance," Kent said. "I don't expect us to change this winning formula, and am excited to work with our new partners on continuing to grow this wonderful business."