The Strategist

Jarden Corp. to Acquire Parker Pen

12/08/2015 - 14:09

Today it became known about a possible merger of the American company Newell Rubbermaid (owner of the brand Parker) with Jarden Corp. (a number of well-known sports brands, including K2, Volkl and Madshus). The deal could be worth $ 13 billion.

Raysonho @ Open Grid Scheduler / Grid Engine
Raysonho @ Open Grid Scheduler / Grid Engine
American companies Newell Rubbermaid and Jarden Corp. are pondering a possibility of merger. Larger Newell Rubbermaid (cap $ 12 billion; annual turnover - $ 6 billion) can buy Jarden Corporation (cap $ 10.6 billion; annual revenue - $ 8 billion). It is reported that, granted the equity premium of about 20 %, amount of the proposal for Jarden could reach $ 13 billion.

The merger can established a company with an annual turnover of $ 14 billion, owning a number of brands known not only in the United States. In particular, Newell Rubbermaid owns Rubbermaid brand (household goods), Irwin (tools), Paper Mate (stationery) and Graco (baby carriages). Perhaps the most famous brand in the company’s portfolio is Parker company, the manufacturer of premium writing instruments, founded in 1888. In 2000, Newell Rubbermaid acquired Parker from Gillette.

Jarden Corporation, in turn, owns several well-known brands of goods for sports and recreation. Among them are: the world's largest producers of roller skates, skiing and other sports equipment K2 Sport; manufacturer of ski and snowboard German Volkl Group; manufacturer of sportswear Marmot and the Norwegian company Madshus, producing cross-country skis, boots and related equipment. Recently Madshus skis got advertised by the fact that many famous biathletes have chosen them. There were Olympic and world champions: Norwegians Ole Einar Bjoerndalen, Halvard Hanevold, Emil Hegle Svendsen and Germans Michael Greis and Kati Wilhelm.

Investors immediately reacted to the reports of possible Newell Rubbermaid-Jarden Corporation’s merger. Stocks of the first rose in price by 7.5%, the second - by 3.5%.