Jarden completes acquisition of Yankee Candle
Rye, N.Y. — Jarden Corporation, a global consumer products company, announced that it has completed its acquisition of Yankee Candle Investments LLC from a fund managed by Madison Dearborn Partners for approximately $1.75 billion in cash, subject to final working capital and other adjustments.
In a release, James E. Lillie, Jarden’s CEO stated: “Yankee Candle has compelling growth opportunities, both here and abroad, providing Jarden cross-platform growth potential as well as immediate financial benefits. Yankee Candle will enhance our overall margins, earnings, and cash flow profile and is expected to provide approximately 10% accretion to our adjusted earnings per share, pre synergies."
Clorox builds upon strategic growth plan
The Clorox Company has updated its strategic growth plan. Called the 2020 Strategy, it focuses on delivering long-term, profitable growth through the year 2020 and builds upon the company’s recently completed centennial strategy.
"Our centennial strategy guided the company during one of the toughest economic recessions the world has experienced since World War II," said chairman and CEO Don Knauss. "Despite that, during the past five years, our strong brands, experienced management team and top-tier capabilities have enabled us to deliver total stockholder returns in the top third of our peer group."
In the past five fiscal years — from July 1, 2008 through June 30, 2013 — Clorox delivered total stockholder returns of 88%, compared to an average of 82% for its peer group and an average of 40% for the S&P 500. Clorox’s strong cash flow enabled the company to raise its dividend from $1.60 to $2.56, an increase of 60%. Between share repurchases and total annual dividends paid to stockholders, Clorox returned more than $2 billion in cash to its stockholders in this five-year period.
"Building on this foundation, our sights are set on 2020, with a strategy that focuses the company on the highest-value opportunities to deliver sustainable, profitable growth," said Knauss.
The 2020 Strategy aims to continue delivering total stockholder returns in the top third of Clorox’s peer group by driving economic profit.
In addition, the company’s long-term financial goals include:
• Growing net sales 3-5% annually
• Expanding earnings before interest and income taxes margin 25-50 basis points annually
• Generating free cash flow of 10 percent to 12 percent of sales annually
"Our 2020 Strategy sets clear goals and aspirations for the company’s next set of milestones,” said Benno Dorer, EVP and chief operating officer of cleaning, international and corporate strategy. “Key to achieving our goals is balancing our resources against sustaining a healthy core, anchored in our U.S. retail business, while seeking growth opportunities in profitable, margin-accretive areas adjacent to our core businesses."
To accomplish its 2020 goals, Clorox has chosen to focus on the following four strategies:
1. Engage its people as business owners.
2. Increase its brand investment behind superior products and more targeted 3-D plans.
3. Grow into profitable new categories, channels and countries.
4. Fund growth by reducing waste in its work, products and supply chain.
Newell Rubbermaid revamps marketing efforts
Newell Rubbermaid is consolidating its marketing efforts and picking one lead creative partner and one lead media-buying partner to help oversee the company’s global advertising and promotion investment.
Bartle Bogle Hegarty has been selected as lead creative agency. It will have full responsibility to deliver strategy, creative execution and implementation, excluding media, in all brand-related communication channels. Part of the Publicis Groupe, BBH works with leading brands, including Johnnie Walker, British Airways, KFC, Audi, Barclays Bank, Westin Hotels & Resorts and Axe. The global assignment will be led by BBH New York, supported by the entire BBH global agency network, including offices in London, Sao Paulo and Shanghai.
PHD has been selected as lead media agency. It will help with overall strategic communication planning and be responsible for all media placements across all channels. PHD, part of the Omnicom Media Group, was originally founded as the world’s first planning-led media agency. Its clients include Mondelez, Porsche, Bentley, ANZ, GlaxoSmithKline, Hyatt and Canon.
"For the first time, we are aligning all our brands and categories behind one set of agency partners to drive big ideas that create a strong point of difference for consumers," said Richard Davies, chief marketing and insights officer of Newell Rubbermaid. "BBH and PHD are the best in the business at what they do. With their partnership, we now have the power to achieve much greater scale, reach and impact as we invest behind growing our brands worldwide."
"Our ambition is to push the limits of what’s possible for our brands," said Mark Tarchetti, Newell Rubbermaid’s chief development officer. "The Growth Game Plan strategy promises to accelerate growth through sharper portfolio choices and new capabilities. Our progress is becoming an increasing reality in important steps like a new state of the art design center that will open next year, investments in e-commerce and innovation, and the appointment of global creative and media agencies. These moves allow us to step-change quality while taking all the efficiencies that come with scale. Our momentum is increasingly visible in the marketplace as we make new A&P investments that are unprecedented in Newell Rubbermaid’s history, and build an even stronger 2014 plan."