Retailer Yankee Candle Sold for $1.75B
Yankee Candle, the nation’s largest maker of scented candles, sold for $1.75 billion in cash to Jarden Corp. New York-based Jarden owns more than 100 brands including Crock-Pot slow cookers, Rawlings baseball equipment, and Sunbeam home appliances. The company’s strategy includes buying leading brands in specialized niches and expanding sales.
Yankee Candle operates about 560 stores in the U.S. and Canada. Its gross margins, or profit after production costs, were close to 57% last year. Jarden is acquiring the candle business from private-equity firm Madison Dearborn Partners LLC, which bought Yankee Candle in 2007 for $1.4 billion cash and the assumption of $300 million in debt.
Yankee Candle chief executive Harlan Kent said being part of Jarden should increase the company’s marketing and technology, and lead to more overseas sales.
“Under 15 percent of our sales are overseas, but over 30 percent of [Jarden’s] sales are international,” said Kent. “We’re going to capitalize on international business to accelerate our growth.”
During the past five years, Yankess Candle has produced more than 1 billion candles and has increased its revenue 18 percent, up to $844 million in 2012. The acquisition is Jarden’s largest to date.