American firm the Jarden Corporation, which owns Pure Fishing and all its associated brands, has entered into a company merger with one of its rivals Newell Rubbermaid.
The deal is to be completed with a combination of cash and stock and will result in a new combined company to be known as Newell brands, which is forecast to have an annual revenue of US $16billion.
The companies said they had identified $500 million in cost cuts over the next four years. They expect the deal to close in the second quarter of 2016.
Newell Rubbermaid CEO Michael Polk will become CEO of the new company, while founder and executive chairman of Jarden, Martin Franklin, will join the board of the new company.
A report by American newspaper USA Today, quoted Michael Polk as saying: “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,” Polk said in a statement.”
The deal gives gives Jarden shareholders $21 in cash and 0.862 shares of Newell Rubbermaid stock for every share, equating to about $60 in total compensation.
Tackle Trade World surmises that it will take a considerable time for any effect to be felt by Pure Fishing’s brands including Berkley, Abu Garcia, Penn, Mitchell, Hardy, Greys, Spiderwire, Fenwick, Sébile, JRC, Chub, Shakespeare and Hodgman.
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