Newell Rubbermaid (NYSE:NWL), the maker of Sharpie markers and Parker pens, agreed to buy diversified consumer products company Jarden (NYSE:JAH) in a cash-and-stock deal valued at $13.2bn.
The combined company, called Newell Brands, will generate $16bn in revenue per year with brands such as Graco, Rubbermaid, Calphalon, Lenox, Yankee Candle, Paper Mate, Sharpie, and Elmer's.
Atlanta, Georgia-based Newell Rubbermaid said on Monday that it expects annual cost savings of about $500mln over four years. The deal is expected to immediately add to earnings per share.
Jarden shareholders will get $21 in cash and 0.862 Newell shares for each share held, the companies said on Monday.
Newell Rubbermaid shareholders will own about 55% of the combined business.
Shares of Boca Raton, Florida-based Jarden rose as much as 2% as of 8:49 a.m. in New York, while shares of Newell tumbled 7%.
Michael Polk, CEO of Newell Rubbermaid, will serve as CEO of the new company.
The transaction is expected to close in 2016's second quarter.
Newell Rubbermaid, founded in 1903, has grown through deals. The company made its most significant acquisition—Rubbermaid—in 1999 for $6bn.