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|Jarden Acquires Pine Mountain(R) Fire Log Business|
RYE, N.Y., Sept. 5 /PRNewswire-FirstCall/ -- Jarden Corporation (NYSE: JAH) announced today that it has acquired the firelog and firestarter businesses of Conros Corporation, Conros International Limited and Java Log(R) in a series of transactions. The business, also known as Pine Mountain(R), is the market leader in firelog sales in North America with revenue of over $100 million. The terms of the transaction were not disclosed. However, in addition to the cash purchase price, a contingent purchase price payment based on the future financial performance of the business may be paid.
Martin E. Franklin, Chairman and Chief Executive Officer of Jarden Corporation commented, "We have been attracted to the firelog market since our acquisition of the Diamond Brands business in 2003. We believe there are significant opportunities for future growth in the firelog and firestarter categories, as well as multiple cross-branding and cross-selling opportunities with both our Diamond(R) and Coleman(R) brands. In addition, the acquisition meets our stated criteria of being a market leader in a niche market with EBITDA margins over 15%, strong cash flow and a history of strong financial performance. Also in line with our acquisition criteria, we expect this transaction to be immediately accretive to earnings."
Mr. Franklin continued, "Pine Mountain(R) has been an innovator in the firelog market over the last several years. It has established its market leadership position through customer service and innovation, most recently illustrated by its focus on using organic, renewable resources in its firelogs. In addition, Pine Mountain(R) has a strong sales team as well as five strategically located, state-of-the-art manufacturing plants in North America. I am delighted to welcome the Pine Mountain(R) employees to the Jarden team and look forward to working together, to build on the strong base of business that has been developed."
Dhiren Chandaria, Chairman of the Conros firelog division commented; "We are proud of the business our family has built in the firelog category over the last 20 years and believe that Jarden is the right company to take the business to the next level. Jarden's expertise in growing market leading brands and access to capital will build upon the success we were able to achieve as a private company. Whilst we focus our entrepreneurial resources on our LePage(R) business with its strategic relationship with the United States Postal Service, we look forward to our continued active involvement with Jarden in the firelog and firestarter market."
The business, which sells under the Pine Mountain(R), Starterlogg(R), Northland(R), Java Log(R), and various private label brands, will become part of the Company's Branded Consumables segment. The Company intends to discuss the acquisition in more detail on its next quarterly earnings call in October.
Jarden Corporation is a leading provider of niche consumer products used in and around the home. Jarden operates in three primary business segments through a number of well recognized brands, including: Branded Consumables: Ball(R), Bee(R), Bicycle(R), Crawford(R), Diamond(R), First Alert(R), Forster(R), Hoyle(R), Java Log(R), Kerr(R), Lehigh(R), Leslie-Locke(R), Loew-Cornell(R), Pine Mountain(R) and Starterlogg(R). Consumer Solutions: Bionaire(R), Crock-Pot(R), FoodSaver(R), Harmony(R), Health o meter(R), Holmes(R), Mr. Coffee(R), Oster(R), Patton(R), Rival(R), Seal-a-Meal(R), Sunbeam(R), VillaWare(R) and White Mountain(TM); and Outdoor Solutions: Campingaz(R) and Coleman(R). Headquartered in Rye, N.Y., Jarden has over 20,000 employees worldwide. For more information, please visit http://www.jarden.com.
Note: This news release contains "forward-looking statements" within the meaning of the federal securities laws and is intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's repurchase of shares of common stock from time to time under the Company's stock repurchase program, the outlook for Jarden's markets and the demand for its products, earnings per share, future cash flows from operations, future revenues and margin requirement and expansion, achievement of financial goals, the success of new product introductions, growth in costs and expenses and the impact of acquisitions, divestitures, restructurings and other unusual items, including Jarden's ability to integrate and obtain the anticipated results and synergies from its acquisitions. These projections and statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those projected as a result of certain factors. A discussion of factors that could cause results to vary is included in the Company's periodic and other reports filed with the Securities and Exchange Commission.
SOURCE Jarden Corporation
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