Newell Rubbermaid's $13 billion takeover of Jarden will create a consumer goods giant with brands like Parker pens, Graco strollers, and Sunbeam appliances. Fred Katayama reports.
Newell Rubbermaid CEO can pull out his company's Waterman fountain pen to sign its deal with Jarden. His company is paying $13 billion in cash and stock to create a consumer goods giant. The deal combines the maker of Sharpie highlighters and Graco strollers with Jarden's 120 brands that include Rawlings gloves, Coleman stoves and Sunbeam irons. The companies say the move will expand their offerings in food, baby products and kitchenware, among other things. Newell CEO Michael Polk will head the new company that will be renamed Newell Brands. He expects the deal will create $500 million in savings over the next four years and immediately add to earnings. SunTrust Robinson Humphrey analyst William Chappell said, "Overall, we believe the deal makes sense in terms of both the top- and bottom-line growth opportunities of the combined businesses." Jarden's shares, which have risen 9 percent since news of the talks broke out December 7, rose in early trading. Newell Rubbermaid surrendering all of its gains since that date.