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Jarden to acquire Waddington Group for $1.35 billion

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Staff writer ▼ | July 13, 2015
Jarden Corporation, a consumer products company, has entered into a definitive purchase agreement to acquire Waddington Group, a manufacturer of disposable tableware, from an investment fund managed by Olympus Partners and other stockholders for approximately $1.35 billion.
Waddington Group
Acquisition   A manufacturer of disposable tableware sold
The price is subject to working capital and other adjustments.

The transaction provides a meaningful addition to Jarden's portfolio while creating opportunities in cross-selling, broadening the distribution platform particularly in the B2B category, and deepening Jarden's talent bench.

Waddington, which is expected to contribute approximately $800 million to 2016 revenues, will be reported as part of Jarden's Branded Consumables segment. The transaction is expected to be funded through a combination of cash on hand, common equity and a mix of bank debt and bonds.

The Waddington Group has many of the same attractive business characteristics as Jarden, including leading market positions in its core categories, products that generate recurring revenue and an experienced management team.

Waddington has delivered consistent organic growth that is in line with Jarden's overall top-line organic growth profile of 3%-5%, as well as strong operating margins and solid cash flow. Its defensible moats around the business have enabled Waddington to demonstrate a proven resilience through economic cycles.

The transaction is aligned with Jarden's disciplined acquisition criteria and it will enhance the Company's cash flow profile. It is anticipated that there will be meaningful revenue synergies that should start in 2016 and grow over time.

The transaction is expected to be immediately accretive to Jarden's adjusted earnings per share in a small way in 2015 and by approximately 5% in 2016.


 

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