Jarden Corp to buy scented candle maker Yankee Candle for $1.75 bn
03 Sep 2013
Jarden Corp, US consumer products company, has agreed to buy scented candle maker Yankee Candle Company Inc for $1.75 billion, The Wall Street Journal today reported, citing people familiar with the matter.
The move comes two months after the owner of Yankee Candle Chicago-based private equity firm Madison Dearborn Partners was looking at listing the largest scented candle company in the US after failing to find buyer willing to pay as much as $2 billion. since it had long-term debt of $846 million, which had put off potential suitors (See: Madison Dearborn to list Yankee Candle after sale fizzles out)
Madison Dearborn had acquired Yankee Candle in 2006 for around $1.6 billion, but potential suitors were put off with the company's long-term debt of $846 million.
The paper said that the deal is likely to be announced as early as today and New Jersey-based Jarden Corp is expected to fund the transaction with a combination of cash, debt and stock.
Massachusetts-based Yankee Candle was founded in 1969 by 17-year-old Mike Kittredge and has become the most-recognised name in the candle business in the US.
Too broke to buy his mother a present, Mike melted some crayons to make her a candle. A neighbour saw it and convinced Mike to sell the candle to her. With that small stake, he bought enough wax to make two candles - one for his mom's present, and another to sell. That was the birth of Yankee Candle.
Today, with over 150 fragrances, Yankee Candle offers the world's largest selection of candle and home fragrance scents. In addition to scented candles, it also provides a wide range of home fragrance products, car fresheners and candle accessories.
The company sells its products through over 500 company-owned retail stores across the US, and generated revenue of $844.2 million in 2012.
With a market cap of around $4.84 billion and annual sales of $6.7 billion, Jarden Corp has a diverse portfolio of over 100 brands.
It operates in three primary business segments, outdoor solutions, consumer solutions and branded consumables
