ATLANTA & MIAMI - Home storage, tool and consumer products giant Newell Rubbermaid has entered into an agreement with Jarden Corp. which will combine the two into a $16 billion company to be named Newell Brands. Subject to shareholder and regulatory approval, the transaction is expected to close in the second quarter of 2016.

In addition to its Rubbermaid professional closet and garage systems lines and other home solution products, Newell Rubbermaid (NYSE: NWL)  is involved in the tooling, writing and baby products markets, with brands that include Irwin and Lenox tools, Elmer's, Sharpie, Paper Mate, Graco, Levolor and Calphalon. Jarden Corp. (NYSE: JAH) is also a major player in the  consumer products market, with a diverse range of 120 brands that include Ball, Bicycle, First Alert and Yankee Candle, as well as Invicta, Jostens, Crock-Pot, Oster,  and Rival.

It will be a cash and stock transaction. For each Jarden share, stockholders will receive $21 in cash and 0.862 shares of Newell Rubbermaid stock at closing. Newell Rubbermaid stockholders will own approximately 55 percent of the combined company. Newell Rubbermaid President and CEO Michael Polk will lead the newly formed  Newell Brands, with Mark Tarchetti, Newell Rubbermaid chief development officer, as the Newell Brads president. The 13-member board of directors will be chaired by  current Newell Rubbermaid non-executive Chairman Michael Cowhig and will include Jarden founder and Executive Chairman Martin Franklin and Ian Ashken, co-founder, vice chairman and president of Jarden.

“The combination of these two great companies creates a $16 billion consumer goods company with incredible potential to grow and create value,” Polk said. “The scale of our combined businesses in key categories, channels and geographies creates a much broader canvas on which to leverage our advantaged set of brand development and commercial capabilities for accelerated growth and margin expansion.”

Franklin also said, “I am delighted that we are to play a part in bringing together these two winning companies. The combination offers significant value for our shareholders and the opportunity to participate in the combined company’s long-term value creation potential as shareholders in Newell Brands. I’m extremely proud of Jarden’s success over the past 14 years, which has been driven by an extraordinary culture designed to perform at a high level. We have spent significant time with Newell Rubbermaid’s senior management team and are convinced they have a similar ambition and drive. I’m excited by the opportunities for this new combined organization and I look forward to being part of this dynamic new chapter.”

James Lillie, Jarden CEO added, “This combination is focused on driving shareholder value and accelerating the growth and profitability of both businesses. Together, the business can move faster, globally leveraging the expertise and ability of the dedicated and talented employee base. The combined scale of both businesses will create opportunities for shareholders, customers and employees as the two businesses are very complementary in vision and in their ability to execute.”

Newell Rubbermaid said it anticipates an annualized cost savings of approximately $500 million over four years, driven by efficiencies of scale and distribution. An S&P 500 company, Newell Rubbermaid posted 2014 sales of $5.7 billion.

Headquartered in Florida, Jarden ranks #348 on the Fortune 500 and has over 35,000 employees worldwide. The company was founded in 2001. 

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