Shares of Jarden Corp. (JAH) surged almost 6% in Tuesday morning trading after the company announced a major acquisition.
The maker of Mr. Coffee brewing machines said that it will pay $1.75 billion to purchase Yankee Candle, the largest U.S. producer of candles, from its private equity owner. The deal, which will close during the fourth quarter, will be financed with debt, cash and common equity, Reuters noted.
Yankee Candle’s owner, Madison Dearborn Partners, had launched an unsuccessful effort to get $2 billion for the candle maker earlier this year. The private equity firm paid $1.6 billion to buy Yankee Candle seven years ago.
Madison Dearborn Partners was advised by both Bank of America‘s (BAC) Merrill Lynch unit and Barclays (BCS) on the transaction.
The deal marks Jarden’s first acquisition since April 2010.