This was a busy week for those following the mergers and acquisition deals, one of the deals that happened was between Jarden Corp (NYSE:JAH) and Jostens Inc.
For those who aren’t familiar with the companies, Jarden is the owner of Sunbeam kitchen appliances and Coleman outdoor gear while Jostens make yearbooks and class rings for students. On Wednesday, news broke out that Jarden agreed to pay $1.5 billion to acquire Jostens.
Jostens is owned by Vistant Holding Corp, which is currently managed by the investment firm KKR & Co. L.P. (NYSE:KKR) and others. For the last several decades Visant has bought out companies involved in school awards because they believe in the demographic.
In an interview, Martin E. Franklin, Jarden's founder and chairman said "There is a procurement platform in Jarden that is second to none and can help Jostens get better products, higher quality and better pricing, that we think we will drive top-line."
This was a safe way of consolidation, it is a way to stay above water in and maintain their position in the sector. According to both sides the deal will add the adjusted earnings in mid-2016.