The Avanti Group is advising clients on Jarden Corp as the retail brand manager adds to its repertoire, candle manufacturer and retailer Yankee Candle.
The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor's attention to what has been described as an opportunistic purchase by Jarden Corp, acquiring brand name scented candle maker and retailer Yankee Candle for $1.75 billion. The deal is reportedly a straight cash transaction between Jarden and the fund that owns Yankee, managed by Madison Dearborn Partners LLC, which acquired Yankee in 2007 for $1.4 billion.
"As a product line it makes sense for Jarden to acquire Yankee as their sales and supply network are both well established and performing rather well. For Yankee it gives a greater sense of stability when your owner is retailing such a diverse range of products. Furthermore, it gives Yankee automatic access to Jarden's international retail supply chain, which of course brings enhanced opportunity for expansion," said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.
The deal comes to fruition at a opportune time for the two companies, with both experiencing solid growth in earning and vigorous expansion of their retail presence. Yankee who also manufactures potpourri and home décor saw its sales rise 7.4 percent last year to $844.2 million as it expanded its retail supply points to 35,000 locations in North America. Many analysts believe that Yankee will make a good fit under the Jarden umbrella, which also holds brands such as Mr. Coffee and Health o meter products.
Shareholders of both companies saw the markets react positively to news of the deal with Jarden Corp shares rising 10 percent to $47.43 in the largest single day move for the company since 2009. This brings the company's gains for the year to 38 percent, far out performing the S&P 500's 15 percent gains. Shareholders of both Yankee and Madison Dearborn are expected to reap benefits totaling $550 million.
"This is a very positive example of how the market rewards what it sees as a good fit in a combined business model. Both sides should be greatly benefited in cost savings and expanded supply infrastructure across the spectrum of their operations. In the short term, shareholders have been well rewarded and we would expect continuing good results and solid performance from the Jarden corporation umbrella. We will continue to monitor and advise our clients on developments affecting current and future holdings in both companies," concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.
The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.