Press release, July, 18, 2005
Sale of The Holmes Group to Jarden Corporation Completed
Boston, MA, July 18, 2005 -- Berkshire Partners LLC today announced the completed sale of The Holmes Group ("Holmes" or "the Company") to Jarden Corporation (NYSE:JAH) for approximately $420 million in cash and 6.2 million shares of Jarden common stock.
"This transaction is a great outcome for Holmes as well as a great outcome for Berkshire Partners," stated Richard K. Lubin, managing director of Berkshire Partners, the Boston-based private equity firm. "We have had a long and productive partnership with Jerry Kahn and his team. Holmes' continual development of new and innovative products in a cost-efficient manner has been critical to the Company's success and has resulted in the significant value we've realized today."
"We have been building The Holmes Group for nearly 25 years, and believe that Holmes' extensive product line and sales network will contribute greatly to Jarden's continued success," stated Holmes CEO Jerry Kahn. "By combining Jarden's consumer solutions business with Holmes, we will create substantial new growth opportunities for Holmes, including new international cross-selling opportunities, particularly in Europe."
Founded in 1982 by CEO Jerry Kahn, Holmes supplies consumer products for the home environment and kitchen markets. In November 1997, Berkshire and management recapitalized Holmes in a transaction designed to support further growth. In February 1999, in conjunction with an equity infusion by Berkshire and management, Holmes acquired The Rival Company, which enabled it to broaden its home comfort brands and participate in the small kitchen appliance market. Today Holmes, based in Milford, Mass., is a leading manufacturer and distributor of well-recognized small kitchen and home environment electrics, including Crock-Pot® slow-cookers, Rival® roasters and deep fryers, Bionaire® air purifiers and seasonal humidifiers, and Seal-a-Meal® vacuum food sealers.
Under Berkshire's and Kahn's ownership, Holmes' revenues have grown from approximately $200 million in 1997 to approximately $700 million today. Holmes also developed its own state-of-the-art manufacturing, distribution and new product development facilities in China within the last five years, having had an active manufacturing presence in China for over fifteen years.
Credit Suisse First Boston acted as financial advisor to Holmes.
Berkshire Partners has invested in mid-sized private companies for the past twenty years through six investment funds with aggregate capital commitments of approximately $3.5 billion. The firm's investment strategy is to seek companies that have strong growth prospects and to partner with talented management teams that are interested in being owners of the companies they operate. Berkshire has developed specific industry experience in several areas including consumer products, industrial manufacturing, transportation, communications, business services, and retailing and related services. Berkshire has been an investor in over 80 operating companies with more than $12.0 billion of acquisition value and combined revenues in excess of $15.0 billion. Additional information may be found at www.berkshirepartners.com.
Jarden Corporation is a leading provider of niche consumer products used in and around the home, under well-known brand names including Ball®, Bee®, Bicycle®, Campingaz®, Coleman®, Crawford®, Diamond®, First Alert®, FoodSaver®, Forster®, Health o meter®, Hoyle®, Kerr®, Lehigh®, Leslie-Locke®, Loew-Cornell®, Mr. Coffee®, Oster®, Sunbeam® and VillaWare®. Jarden operates through four business segments: Branded Consumables, Consumer Solutions, Outdoor Solutions and Other. Headquartered in Rye, N.Y., Jarden has over 16,000 employees worldwide. For more information, please visit www.jarden.com.