Sources told the Wall Street Journal (WSJ) that Jarden Corp would acquire Yankee Candle Company for USD 1.75 billion. Jarden Corp is a consumer products firm that carries brands like Sunbeam home appliances, Crock-Pot slow cookers and Marmot clothing. Yankee Candle, meanwhile, is the largest scented-candle maker in the US.
Jarden would be acquiring the candle manufacturer from Madison Dearborn Partners, the private equity company that owns Yankee Candle. Madison Dearborn paid USD 1.4 billion for the candle maker when it acquired Yankee Candle in 2007. The private equity firm also assumed the candle maker's debt of USD 300 million in the 2007 deal.
Yankee Candle now has around 560 stores in the US and Canada. Last year, it posted profit after production costs of nearly 57%. Jarden only had gross margins of 29% in 2012, the WSJ reported.
The sources also said that Jarden would fund the acquisition using cash, debt and stock. A public announcement about the deal would be made on Tuesday.
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