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Gerritt

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The Jarden Corp. today announced that it has acquired Pure Fishing and its brands that include Abu Garcia, Berkley, Mitchell, Stren, Trilene, and Gulp!.

 

Jarden Corp. also owns the Coleman Co., which yesterday signed a sponsorship agreement with FLW Outdoors. That agreement fueled speculation that it or its parent company (Jarden) might be looking to expand in the fishing market (see "Coleman and fishing" below). Pure Fishing is also an FLW Outdoors sponsor.

 

The news isn't a total surprise, since Pure Fishing underwent a recapitalization in 2003, the purpose of which many believed was to grow and then sell the company.

 

What effect the sale will have on current Pure Fishing sponsorships of leagues and pros isn't known at this time.

 

Along with Coleman and now Pure Fishing, Jarden owns many other consumer brands including Ball, Hoyle, FoodSaver, Mr. Coffee, Oster, and others.

 

According to a press release, Pure Fishing had 2006 revenue in excess of $250 million. Detailed terms of the transaction were not disclosed, but the purchase price consisted of $300 million in cash, a $100 million 5-year note with a 2% coupon, and warrants exercisable into Jarden common stock with a strike price of $45.32.

 

In addition to the upfront purchase price, a contingent purchase price payment based on the future financial performance of the acquired business may be paid.

 

The press release also said: "The Pure Fishing acquisition is consistent with the company's stated strategy of purchasing leading, niche consumer-oriented brands with attractive cash flows and strong management. Pure Fishing will be joining The Coleman Company, Inc. as part of the company's Outdoor Solutions segment and is an accretive acquisition before synergies."

 

Jarden chairman and CEO Martin E. Franklin said: "Pure Fishing is an excellent fit for Jarden and our Outdoor Solutions segment. We believe there are significant opportunities for future growth in the recreational fishing category, as well as cross-selling, channel expansion and geographical expansion opportunities with both our Coleman and Campingaz brands. As an established leader and an innovator in the specialty, sporting goods and mass channels for a number of decades, we believe Pure Fishing is well positioned to continue its growth and strong financial performance under Jarden and we welcome the entire Pure Fishing team to our company."

 

Franklin added: "We strategically raised capital in the 4th quarter of 2006 and opportunistically did so again earlier this year. With this transaction we're beginning to put the capital raised to good use as we continue to look for opportunities to increase shareholder value. We look forward to discussing our 1st quarter results with investors later this month and discussing the transaction in more detail at that time."

 

Gary A. Kiedaisch, Jarden Outdoor Solutions president, commented: "The strength of Pure Fishing's brands in combination with Coleman's vast product line provides us with an exceptional platform for the future growth of our Outdoor Solutions business. Leveraging the strengths of the Jarden, Coleman and Pure Fishing domestic and international operations will help us drive top-line growth, expand new product and brand offerings, while creating synergies and a greater level of innovation, responsiveness and service to retailers and consumers."

 

Pure Fishing chairman Tom Bedell, whose father founded the company, said: "We are proud of the business that we've built and believe that Jarden is the right company to take the business to the next level. Jarden's expertise in growing leading brands and access to capital will build upon the expertise and innovation we have at Pure Fishing. We also are extremely proud to partner with Coleman under the banner of Jarden Outdoor Solutions."

 

 

Gerritt.

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I think it's great news for Pure Fishing! Sometimes it's needed whereby a company of this magnitude needs the financial support of another corporation in order to expand it's brand lines. Hopefully as mentioned that Jarden Corp. can take it to the next level? It would be very sad to see this backfire after all the hard work, dedication and money invested in such an acquisition.

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Hopefully as mentioned that Jarden Corp. can take it to the next level? It would be very sad to see this backfire after all the hard work, dedication and money invested in such an acquisition.

 

Whats the next level? I thought what they had/did was well enough. I never had a problem with any purchaces or returns.

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Interesting.

 

I guided Berkley Bedell last September on Lac Seul. Couldn't meet a nicer, more modest guy anywhere. Very interesting to hear him tell the story of starting the company and inventing Berkley Trilene.

Edited by trapshooter
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Brian! I'm really not sure what the next level is either? I was quoting Tom Bedell, chaiman of Pure Fishing! He seems to think that this sale has a real plus side to it or I don't think they would have sold the company to just anyone. I personally have no complaints about any of the Pure Fishing products I've purchased over the years myself and wish them even greater success with the new BOSS!

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