Jarden Corp. (Miami, FL), a leading global consumer products company with more than 120 brands such as Ball, Crock-Pot and Yankee Candle, announced that it will acquire Waddington Group Inc. (Covington, KY), the disposable plastic tablewear maker for commercial, foodservice and retail markets, for close to $1.35 billion from an investment fund managed by private equity firm Olympus Partners.
Waddington, which is expected to contribute approximately $800 million to 2016 revenues, will be reported as part of Jarden's Branded Consumables segment. The transaction is expected to be funded through a combination of cash on hand, common equity and a mix of bank debt and bonds, said Jarden in a news statement.
Martin E. Franklin, Jarden's Founder and Executive Chairman, commented, "As a fast-growing, well-managed business, Waddington offers a solid platform for us to leverage our proven, time-tested approach to driving organic growth and creating additional value through continued investments in product development and innovation. Waddington's entrepreneurial growth culture is a strong cultural fit with Jarden, while offering a compelling financial and strategic value proposition."
James E. Lillie, Jarden's Chief Executive Officer, added, "Jarden's global presence, capabilities and scale will help Waddington's expansion into new markets and geographies to further drive top-line growth and profitability. At the same time, Waddington should enhance and accelerate Jarden's growth in the B2B market. Potential future cost and distribution synergies will help support investments and drive bottom-line improvements across the Jarden platform."
Mike Evans, Waddington Group's President and Chief Executive Officer, added, "This is a significant milestone for Waddington. Jarden is well known as a stable, long-term owner of businesses, and this will provide us with a strong platform upon which to continue to expand. This acquisition provides us with the resources and scale necessary to further strengthen our existing product innovation and distribution capabilities to drive top- and bottom-line growth. I am confident that Waddington's employees share in my excitement as we look forward to becoming part of the Jarden family."
The transaction is expected to close in the third quarter of 2015 and is subject to regulatory approval.