Jarden Corporation, best known for its Mr Coffee brand, has agreed to the purchase of Yankee Candlee Co Inc. for $1.75 billion (£1.2 billion) from private equity firm Madison Dearborn Partners LLC.
The candle maker’s chief executive, Harlan Kent, commented that the deal “won’t change our winning formula”, adding that he was “very proud of our Yankee Candle team and their proven ability to create scentsational customer experiences, and deliver industry leading financial performance.
The deal was struck after Madison failed to attract the higher price of $2 billion for America’s largest scented candle manufacturer earlier this year, and is to be funded with cash, common equity and a mixture of bank debt and bonds.
Chicago-based Madison Dearborn acquired Yankee Candle for $1.6 billion in 2006. Had it not found a buyer at the reduced sale price, the equity firm intended to float Yankee in the stock market.
Speaking of the company’s new owner, Harlan added: “In joining the Jarden family of companies we open the door to opportunities to share best practices and technology, partner with their go-to-market teams, cross market with their 120-plus leading brands, and leverage their global scale and presence to continue to grow our International business. We also look forward to continuing to open new Yankee Candle stores, growing our wholesale, consumer direct, and fundraising businesses, and leveraging our brand strength, unparalleled reputation for quality and Made In America heritage.”
The 43 year old company sells its home fragrance products through a wholesale customer network of around 35,000 retailers and an expanding network of company-owned and operated outlets (currently 561 in the US and 1 in Canada.) Outside the US Yankee sells primarily through its subsidiary, Yankee Candle Company (Europe), Ltd., which has an international wholesale customer network of approximately 6,400 store locations and distributors covering 57 countries.
The transaction, which is expected to close early in the fourth quarter of 2013, is subject to customary closing conditions and regulatory approvals.
