Business

Newell Rubbermaid to buy Jarden in cash-and-stock deal

In this file photograph taken July 30, 2009, Rubbermaid containers are stacked at a store in Detroit. Newell Rubbermaid announced Monday, Dec. 14, 2015, it is buying Jarden Corp. in a cash-and-stock deal that creates a $16 billion consumer goods company. (AP Photo/Paul Sancya, File)
In this file photograph taken July 30, 2009, Rubbermaid containers are stacked at a store in Detroit. Newell Rubbermaid announced Monday, Dec. 14, 2015, it is buying Jarden Corp. in a cash-and-stock deal that creates a $16 billion consumer goods company. (AP Photo/Paul Sancya, File) AP

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.

Newell Rubbermaid employs approximately 840 in the Charlotte area, spokeswoman Nicole Quinlan said. The company operates Rubbermaid Medical Solutions in Huntersville, near Lake Norman. RMS was launched in 2003 in response to hospitals’ need for modern medical carts.

“After the transaction closes, we will build detailed integration plans appropriate to the opportunity. Many of the synergies we expect are non-people related,” Quinlan said, adding that the company expects “no major changes” in 2016.

Shareholders of Boca Raton, Fla.-based Jarden 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 percent 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.

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

Staff Writer Katherine Peralta contributed.

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