Newell Rubbermaid and Jarden Corporation announced that they have entered into an agreement to combine the two companies. This transaction creates a monstrous $16 billion consumer goods company to be named Newell Brands, which is all you need to know about who took the initiative.
Most home cooks know the Rubbermaid brand for their quality storage and organizer products, but not many realize that Newell Rubbermaid also has Calphalon cookware and kitchen electrics and bubba on the go beverage containers.
On the other hand, Jarden is a name few kitchen aficionados have heard of, but their stable of products include many popular culinary brands that you do know – Breville, Ball, Cadence, FoodSaver, Oster, Sunbeam, Coleman, Lenox, GrillMaster, CrockPot, Margaritaville cocktail mixer, Mr. Coffee, Rival, SealAMeal, VillaWare, and White Mountain ice cream makers.
Founder Martin E. Franklin conceived the name “Jarden” by combining the heritage of the company Ball Mason Jar (“Jar”) with the concept of their products being used in the home (“den”). The coined term “Jarden” was also meant to evoke the connotation of the French word for garden (jardin), an intentional foreshadowing of the company’s plan to expand its product range outside the home.
The list of overall houseware products is stunning; in addition to the kitchen brands listed above, add these:
Bee, Bernardin, Bicycle, Billy Boy, Crawford, Diamond, Envirocooler, Fiona, First Alert, First Essentials, Hoyle, Kerr, Lehigh, Lifoam, Lillo, Loew Cornell, Mapa, Millefiori, NUK, Pine Mountain, Quickie, Spontex, Tigex, Waddington, Yankee Candle, YOU, Bionaire, Health o meter, Holmes, Patton, Rainbow, Levolor, Kirsch, Goody, Graco, Aprica, Teutonia, Baby Jogger, Sharpie, Paper Mate, Expo, Prismacolor, Parker, Waterman, Reynolds, Rotring, Elmer’s Products, Abu Garcia, AeroBed, Berkley, Campingaz, Dalbello, ExOfficio, Fenwick, Greys, Gulp!, Hardy, Invicta, Jostens, K2, Marker, Marmot, Mitchell, Neff, PENN, Rawlings, Shakespeare, Squadra, Stearns, Stren, Trilene, Völkl, Zoot, and still others, but I am tired of typing them out.
This merger combines two of the three largest housewares companies into one truly dominant entity, with products reaching into every aspect of consumer goods. Clorox is now a distant second in overall revenue at $5.5 billion annually.
The typical merger announcement glad-handing was begun by Michael B. Polk, Newell Rubbermaid President and Chief Executive Officer, “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. I have long respected the value creation track record and entrepreneurial vision of Jarden’s founder, Martin E. Franklin, co-founder Ian G.H. Ashken, and their team led by Chief Executive Officer James E. Lillie.”
Mr. Franklin continued the back and forth pleasantries, “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.”
I ‘m sure Newell Brands will make more acquisition news in the coming years as this new housewares giant will be able pick from any number of attractive product manufacturers to add to their already impressive stable of brands.