Jarden Consumers Solutions has acquired Waddington Group, a manufacturer and marketer of premium disposable tableware for commercial, food service and retail markets, from an investment fund managed by private equity firm Olympus Partners for $1.35 billion.
According to Jarden officials, the transaction provides a meaningful addition to Jarden’s portfolio while creating opportunities in cross-selling, broadening the distribution platform particularly in the B2B category, and deepening Jarden’s talent bench. Waddington, which is expected to contribute approximately $800 million to 2016 revenues, will be reported as part of Jarden’s Branded Consumables segment.
The transaction is expected to be funded through a combination of cash on hand, common equity and a mix of bank debt and bonds.
Waddington has delivered consistent organic growth that is in line with Jarden’s overall top-line organic growth profile of 3% to 5%, as well as strong operating margins and solid cash flow, Jarden officials said.
“As a fast-growing, well-managed business, Waddington offers a solid platform for us to leverage our proven, time-tested approach to driving organic growth and creating additional value through continued investments in product development and innovation,” said Martin Franklin, Jarden’s founder and executive chairman.
The transaction, which is expected to close in the third quarter of 2015, is subject to customary closing conditions and regulatory approvals.