Jarden Corporation began offering 11.6 million shares of its common stock to raise cash for its acquisition of Yankee Candle Investment LLC.
The offering, which would raise at least $545 million at Jarden’s current $47 share price, is being made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. Jarden expects to grant the underwriters an option for a period of 30 days to purchase up to an additional 1,740,000 shares of common stock.
If the acquisition of Yankee Candle is not completed, Jarden intends to use the net proceeds from the offering for general corporate purposes, which could include acquisitions for its Outdoor Solutions Segment. JOS owns one of the largest portfolios of sporting goods brands in the world, including Abu Garcia, Aero, Berkley, Campingaz, Coleman, ExOfficio, Fenwick, Gulp!, Invicta, K2, Marker, Marmot, Mitchell, Penn, Rawlings, Shakespeare, Stearns, Stren, Trilene, Völkl, and Zoot.
Jarden announced Sept. 3 that is had agreed to purchase Yankee Candle for $1.75 billion and fold it into its Branded Consumables Segment (BCS). If completed the acquisition would increase Jarden’s annual revenues by $800 million to $7.7 billion and increase BCS’s share of the company’s revenues from 26 to 35 percent. JOS’s share of revenues would drop from 39 to 35 percent.
Barclays Capital Inc. is acting as lead joint book-running manager, and Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and SunTrust Robinson Humphrey, Inc. are acting as joint book-running managers for the offering.
