Jarden to buy disposable cutlery maker Waddington for $1.35 billion
(Reuters) - Jarden Corp JAH.N said it would buy disposable tableware maker Waddington Group for $1.35 billion, bolstering a portfolio of brands that ranges from Sunbeam kitchen appliances to Coleman outdoor gear.
Waddington, owned by private equity firm Olympus Partners, makes plastic plates, cups and cutlery. It is expected to contribute about $800 million to Jarden's revenue in 2016.
The deal is Jarden's second biggest after its $1.75 billion acquisition of scented candles maker Yankee Candle in 2013.
Martin Franklin, Jarden's founder and chairman, has built the company through acquisitions, making it one of the largest diversified consumer products makers in the United States, selling everything from firewood to condoms.
Since it was formed in 2001, net sales have grown from $305 million to $8.3 billion in 2014.
Jarden's shares rose as much as 6.6 percent to a record-high of $55.75 on Monday on the deal. Reuters reported in March that Olympus was looking for bids for Waddington.
"We think Jarden is very focused on top-line synergies for this transaction," J.P. Morgan analyst John Faucher wrote in a note.
He said the deal would also help Jarden boost distribution of its own products such as Ball jars, Diamond plastic ware and Yankee Candles in the food services market.
Waddington will be clubbed with Jarden's biggest business, branded consumables, which includes Bicycle playing cards and NUK baby products. Continued...