Pure Fishing sold to Coleman
Pure Fishing sold to Coleman camping maker
Bloomberg News Service
April 10, 2007
Jarden Corp., the maker of Coleman camping gear, agreed to buy closely held Pure Fishing Inc. for $400 million to boost revenue at its slowest-growing unit.
Pure Fishing sells rods and reels under the Abu Garcia and Berkley brands and Stren and Trilene fishing line. The company, with U.S. operations based in Spirit Lake, Iowa, had more than $250 million in 2006 sales, Jarden said today in a statement.
Jardenís purchase would be its eleventh acquisition in five years. Pure Fishing will be part of the companyís outdoor unit, where sales grew 9.8 percent last year, trailing the 21 percent gain for the Rye, New York-based company as a whole. The outdoor division also includes the Coleman and Campingaz brands.
Pure Fishing may add 5 cents to 10 cents a share to Jardenís earnings this year, Amy Low Chasen, an analyst with Goldman Sachs Group Inc., wrote in a report today. She estimates Jarden will earn $2.48 a share. The company might make similar acquisitions in the next few months, she wrote.
Jarden will pay $300 million in cash and $100 million in a five-year note convertible to shares at a strike price of $45.32. It may make additional payments based on the performance of the Pure Fishing brands.
Jarden also makes Mr. Coffee, Sunbeam and Oster brand kitchen appliances. It added outdoor gear including Coleman in January 2005 by buying American Household Inc. for $745.6 million.
Jardenís shares fell 24 cents to $40.97 at 11:40 a.m. in New York Stock Exchange composite trading. They have gained 34 percent in the past 12 months.
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