Jarden announces offering of 11.6M shares
RYE, N.Y. (AP) — Jarden, the consumer products company, is making a public offering of 11.6 million shares to help fund its $1.75 billion acquisition of Yankee Candle.
Jarden announced the acquisition of the retailer from Madison Dearborn Partners LLC on Tuesday, and said it expects the deal to close in fourth quarter.
The Rye, N.Y., company is giving underwriters a 30-day option to buy up to an additional 1.7 million shares. If the deal falls through, the company plans on using the proceeds of the offering for general purposes.
Shares of Jarden Corp. fell $1.93, or 4.1 percent, to $45.50 in premarket trading Wednesday.
A public offering can dilute the value of existing shares, so a sell-off shortly after such an announcement can weigh on a company's stock