Jarden Corporation has signed a definitive agreement to acquire privately held American Household, Inc. for $745.6 million in cash for the equity and the assumption or repayment of indebtedness. American Household is the parent of The Coleman Company, Inc. and Sunbeam Products, Inc. In connection with the acquisition, Warburg Pincus, the global private equity firm, will invest $350 million of equity into Jarden.

Upon completion of the acquisition, Jarden will be positioned as a global market leader, holding the #1 or #2 market position in many of its core consumer product categories, including warming blankets, smoke alarms, professional grooming products, various small appliances, camping equipment, home vacuum packaging, home canning, kitchen matches, plastic cutlery, toothpicks, rope, cord and twine and playing cards.

Commenting on the transaction, Martin E. Franklin, Jarden's Chairman and Chief Executive Officer, said: “We are delighted to add the renowned products of the American Household portfolio to our growing business, which will allow us to extend our market positions while tapping new strategic sectors. It is expected that this transaction will bring immense benefits to the company, our customers and employees by expanding our operating platform, both internationally and domestically, and by broadening and diversifying our product lines through superior cross-selling, retail distribution and licensing enhancements.”

Mr. Franklin added, “We believe the transaction will be immediately accretive to earnings, excluding any restructuring and one-time charges. The combination will create new sales, marketing as well as operating synergies that we expect to lead to margin improvements in the future. We believe that together, the new Jarden will be poised for accelerated growth, and we are tremendously excited about welcoming the American Household businesses and employees to the Jarden family.”

Jerry W. Levin, Chairman and Chief Executive Officer of American Household said, “I am very proud of what all of the American Household employees have accomplished, and I am confident that they will continue to excel in the future as part of Jarden. I believe that Jarden is a partner well-suited to help our businesses capitalize on our strong foundation and rich heritage.”

In connection with the acquisition, Warburg Pincus will invest $350 million in Jarden and the firm's Co-President, Charles R. Kaye, will join the Jarden board of directors.

Commenting for Warburg Pincus, Mr. Kaye said: “We're delighted to have the opportunity to partner with a successful and dynamic entrepreneur like Martin and to work together with his team to help Jarden enhance its operating platform for growth and margin expansion.” Mr. Franklin further stated, “We welcome our new investor, Warburg Pincus, and look forward to a rewarding and mutually beneficial relationship as we work to maximize the potential of the combined company.”

The transaction is expected to close during the first quarter of 2005, subject to Hart-Scott-Rodino approval and other customary closing conditions. Upon completion of the acquisition, Jarden will be a global leader in the consumer products sector:

  • Annualized combined revenue: Approximately $2.6 billion
  • Number of employees: Approximately 9,000
  • Market-leading brands: Jarden
    Ball(R), Bee(R), Bernardin(R),
    Bicycle(R), Crawford(R),
    Diamond(R), FoodSaver(R),
    Forster(R), Hoyle(R), Kerr(R),
    Lehigh(R), Leslie-Locke(R),
    Loew-Cornell(R) and VillaWare(R).
    American Household
    BRK(R), Campingaz(R), Coleman(R),
    First Alert(R), Health o meter(R),
    Mr. Coffee(R), Oster(R) and
    Sunbeam(R)

  • Company headquarters: Rye, New York
  • Chairman and Chief Executive Officer: Martin E. Franklin

“We are tremendously excited to work with the people of American Household,” Mr. Franklin said, commenting on the combined company's employee base. “We have always said that Jarden's most important assets are our employees, and our commitment to them, in addition to our customers and shareholders, will continue to guide our company.”

Citigroup Global Markets and CIBC World Markets are acting as primary financial advisors to Jarden and have provided commitments to underwrite the debt financing for the acquisition. In addition, Citigroup Global Markets rendered a fairness opinion to Jarden related to the acquisition of American Household.