The Newell Rubbermaid stock price slipped 11% Monday after the company inked a $13.22 billion deal to buy Jarden Corp. (NYSE: JAH).
Talks of a deal surfaced last week, but Monday's official announcement failed to generate much enthusiasm. Even with today's drop, Newell Rubbermaid Inc. (NYSE: NWL) stock is up 6.2% year to date.
The deal combines Jarden's brands, such as Sunbeam kitchen appliances, Coleman outdoor gear, and Yankee candles, with Newell Rubbermaid's portfolio of food storage products, Goody hair products, and Graco strollers. The acquisition also gives Newell Rubbermaid yearbook and class ring maker Jostens Inc., which Jarden bought for $1.5 billion in October.
Under terms of the deal, Jarden shareholders will receive $21 in cash and 0.862 Newell Rubbermaid shares. That values the deal at $13.2 billion, based on Friday's close. The cash and stock deal implies an offer of $60 per share. That's a 14% premium to Jarden's closing price on Friday and a 24% premium to Jarden's average stock price over the last month.
Newell Rubbermaid said the deal expands its presence in food and beverage, baby products, and kitchen appliances among key retailers and geographies.
"They don't really compete, but they go after the same customers and share areas on the shelf," Jarden founder and CEO Martin Franklin said.
Here's what investors need to know about the Newell Rubbermaid stock price now...