Madison Dearborn Partners LLC, a private equity firm, will pay about $1.4 billion in cash to acquire Yankee Candle, South Deerfield, MI. Including assumed debt, the deal is worth about $1.7 billion.
Under terms of the agreement, Yankee Candle shareholders will receive $34.75 per share in the deal, which is expected to close in the first quarter. On Oct. 24, Yankee’s share price closed at $28.72.
The price is a premium of more than 57% to the company’s closing price on July 25, the day before the company said it was considering strategic alternatives such as a sale. Madison Dearborn is based in Chicago.
Yankee Candle also said that third quarter sales rose 17% to nearly $160 million, but net income declined 3% to $14.9 million. Yankee Candle had sales of $601 million in 2005 and was ranked No. 22 in The Top 50, Happi’s annual look at the leading U.S. companies in the household and personal products industry.