Newell scoops up Jarden for $15 billion

Newell Rubbermaid and Jarden Corp. have officially tied the knot.

Newell Rubbermaid officially scooped up the rival company for a purchase price of $15 billion, or $13 billion without convertible debt.

The combined company will be known as Newell Brands and is expected to have annual revenue of $16 billion.

Newell Rubbermaid CEO Michael Polk will become chief executive of the new company, and Mark Tarchetti, Newell chief development officer, will become president.

Martin Franklin, founder and executive chairman of Jarden, will become a Newell Brands board member, and Newell non-executive chairman Michael Cowhig will continue presiding over the board.

“The combination of these two great companies creates a $16 billion consumer goods company with incredible potential to grow and create value,” said Polk. “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."

Jarden specializes in home goods, encompassing brands such as Crock-Pots, Sunbeam, Coleman, and Yankee Candle.

For each share, Jarden shareholders will receive $21 in cash and 0.862 of a share in Newell Rubbermaid stock at closing. Newell Rubbermaid shareholders will own approximately 55% of the company after the transaction is complete.

The transaction is expected to close in the second quarter of 2016. The expected synergies over the next four years total approximately $500 million.