Under the terms of the agreement, Jarden shareholders will receive $21 in cash and 0.862 shares of Newell Rubbermaid stock for each of their Jarden shares at closing, according to a joint Newell-Jarden statement.
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The deal values Jarden at $60 per share and its stock rose $1.29, or 2.4 per cent, to $53.97.
The combined company, which will be known as Newell Brands, would have annual revenue of about $16 billion.
“This is a winning combination of brands that are complementary; they are going after the same customers”, Cramer added.
Newell Rubbermaid gapped open lower this morning and is now down 2.29 at $43.00.
Mark Tarchetti, now chief development officer, Newell Rubbermaid, will become the president of Newell Brands upon completion of the transaction, with an initial focus leading the integration of the companies, including synergy delivery, portfolio strategy and long-term business development plans such as accelerated market deployment of the brands at home and internationally.
Newell Rubbermaid said it expects the deal to expand its presence in food and beverage, baby products and kitchen appliances among key retailers and geographies.
The deal also gives Newell ownership of brands such as Yankee Candle, as well as yearbooks and class rings maker Jostens Inc, which Jarden bought for $1.5-billion in October. They include Jarden’s founder and executive chairman, Martin Franklin, and Jarden co-founder, vice-chairman and president, Ian Ashken. (“Newell Rubbermaid”) (NYSE: NWL). The deal is expected to close in the second quarter of 2016.
“The combined scale of both businesses will create opportunities for shareholders, customers and employees as the two businesses are very complementary in vision and in their ability to execute”, said Jarden CEO James Lillie.
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Barclays was the lead financial adviser to Jarden, while and UBS Investment Bank also advised the company.
