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Newell Rubbermaid and Jarden’s Plan to Merge Can Lead to Growth

Newell Rubbermaid renowned for making Parker pens and Jarden is discussing partnership deal. Once the deal gets finalized, makers of Graco baby strollers, Sharpie markers and PaperMate will collaborate along with Yankee candles, Coleman, and Mr. Coffee machines. Moreover, Newell stock is rising after the speculative news of its merger with Jarden is out.

Consumer product manufacturers Newell Rubbermaid and Jarden are into talks to combine their businesses. As the companies are still discussing the matter, inside news are not out yet. According to the MarketWatch report, Newell Rubbermaid is slightly larger, with a market capitalization of about $12 billion till Monday afternoon, compared with Jarden's value of $10.5 billion.

Keeping the typical takeover premium concept in mind, an acquisition of Jarden could value Newell more or less $13 billion. Once the companies merge, the annual sales of the combined force would be around $14 billion. The shares of Newell also rose only after the Wall Street Journal report on the speculation of the partnership deal between these two companies.

As per the research studies of the fiscal market, the shares of both the companies have surged in recent times for making series of acquisitions. Investors loved their way of doing business while strengthening the economy.

According to My Informs news, Newell's shares were up 2.2 percent at $49.24 in extended trading on Monday, while Jarden's shares rose about 1 percent to $50.50. In the late afternoon, Newell has struck to 16 years high of $50.90 in the stock market.

Newell Rubbermaid manufactures writing products as well as household products under several other brands. Jarden also makes household goods and appliances under different brands along with distributing those to club stores, retailers, and wholesalers.

Jarden also owns Rawlings, a St. Louis-based sports Equipment Company. After the merging speculative news broke, both Jarden and Newell spokespersons were unavailable to make any comment.

A person familiar with the matter expressed about the on-going merger discussion but requested anonymity. The deal is still under negotiation and the matter is confidential until now.

Therefore, the terms under the discussion could not be learned as per the Wall Street Journal reports. In 2015, the total takeover values in dollar reached a record high. This year is known as a period of mergers and acquisitions.

Martin Franklin, the successful leader of Jarden is well-known as the serial acquirer. The company represents more120 brands including Crock-pot cookers, Rawling baseball mitts, Aerobed inflatable mattress, Sunbeam irons and many more.

There is nothing new to tell about Newell, an already established and market-dominating company. Undoubtedly, if these two successful companies unite, the result would be quite ravishing.


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