Dec 14, 2015 2 min read

ATLANTA (AP) — Newell Rubbermaid is buying Jarden Corp. in a cash-and-stock deal worth about $13.2 billion.

The combined company will generate a mammoth $16 billion in revenue per year with brands such as Paper Mate, Sharpie, Elmer’s, Rubbermaid, Calphalon, Lenox, Yankee Candle and Graco.

Jarden shareholders will receive $21 in cash and 0.862 shares of Newell Rubbermaid stock for each share they own. The implied total value is $60 per share.

Newell Rubbermaid shareholders will own about 55 percent of the combined business. It said Monday that it expects annual cost savings of about $500 million over four years. The transaction is expected to immediately add to earnings per share.

Michael Polk, CEO of Atlanta-based Newell Rubbermaid, will serve as CEO of a company that will adopt the name Newell Brands. Mark Tarchetti, chief development officer at Newell Rubbermaid, will become president.

Three Jarden directors will join the Newell Brands board. They include Jarden founder and Executive Chairman Martin Franklin and Jarden co-founder, Vice Chairman and President Ian Ashken. The Newell Brands board will include 13 members. Michael Cowhig, non-executive chairman of Newell Rubbermaid, will continue in that role for the combined business. Jarden is based in Boca Raton, Fla.

The deal is targeted to close in 2016’s second quarter. It still needs approval from shareholders of both companies.