New York, NY, United States (4E) – Jarden Corp., a maker of consumer products, announced that it will acquire Yankee Candle in a $1.75bn cash deal after the private-equity owners of the country’s biggest maker of scented candles failed to sell the company earlier this year.
Jarden will use cash to buy the Yankee Candle from a fund managed by private-equity firm Madison Dearborn Partners LLC, according to a statement released Tuesday. The deal, which is expected to be completed in the fourth quarter, is expected to increase Jarden’s adjusted per-share earnings by around 10 percent.
Gross margins, or profit after production costs, for Yankee Candle were nearly 57 percent last year, while Jarden’s gross margins were at 29 percent.
The transaction may also revive Jarden’s slowing sales growth, which eased to 0.2 percent in 2012 after surging 11 percent in the previous year. In 2007, Madison Dearborn paid $1.4bn to buy Yankee Candle, which operates more than 35,000 retail stores in North America.
Earlier this month, Madison Dearborn hired investment bankers to help them find a buyer, but did not get the price — around $2bn — it was looking for, according to people familiar with the matter.
In 2010, Jarden had its last major deal when it agreed to buy several household and infant-care brands from French oil company Total SA for $450mn.