Sunbeam 2010 Annual Report Download - page 10

Management’s Discussion and Analysis
Jarden Corporation Annual Report 2010
Summary of Significant 2010 Activities
• In January 2010, the Company completed a registered public offering for $492 million aggregate principal amount of 7 1/2%
senior subordinated notes due 2020 and received approximately $476 million in net proceeds.
• In April 2010, the Company completed the acquisition of the Mapa Spontex Baby Care and Home Care businesses
(“Mapa Spontex”) of Total S.A. (“Total”), through the acquisition of certain of Total’s subsidiaries. Mapa Spontex is a global
manufacturer and distributor of primarily baby care and home care products with leading market positions in Argentina,
Brazil and Europe in the core categories it serves.
• In July 2010, the Company entered into an amendment to its securitization facility that increased maximum borrowings from
$250 million to $300 million and extended the term for three years until July 2013.
• In August 2010, the Company entered into an amendment to the Company’s senior secured credit facility. The amendment,
in part, extended the maturity date of $364 million principal amount of existing term loans from January 2012 to January
2015; increased the gross availability under the existing revolving credit facility from $100 million to $150 million and
extended the maturity date until January 2015.
• In November 2010, the Company completed a registered public offering for $300 million aggregate principal amount of
6 1/8% senior notes due 2022 and received approximately $294 million in net proceeds.
• During the fourth quarter, the Company completed two tuck-in acquisitions, the acquisitions of Aero Products International,
Inc. (“Aero”), a leading provider of premium, air-filled mattresses and Quickie Manufacturing Corporation (“Quickie”), a
leading supplier and distributor of innovative cleaning tools and supplies.
Acquisitions
Consistent with the Company’s historical acquisition strategy, to the extent the Company pursues future acquisitions, the Company
intends to focus on businesses with product offerings that provide geographic or product diversification, or expansion into related
categories that can be marketed through the Company’s existing distribution channels or provide us with new distribution channels
for our existing products, thereby increasing marketing and distribution efficiencies. Furthermore, the Company expects that
acquisition candidates would demonstrate a combination of attractive margins, strong cash flow characteristics, category leading
positions and products that generate recurring revenue. The Company anticipates that the fragmented nature of the consumer
products market will continue to provide opportunities for growth through strategic acquisitions of complementary businesses.
However, there can be no assurance that the Company will complete an acquisition in any given year or that any such acquisition will
be significant or successful. The Company will only pursue a candidate when it is deemed to be fiscally prudent and that meets the
Company’s acquisition criteria. The Company anticipates that any future acquisitions would be financed through any combination of
cash on hand, operating cash flow, availability under our existing credit facilities and new capital market offerings.
2010 Activity
On April 1, 2010, the Company acquired Mapa Spontex from Total, through the acquisition of certain of Total’s subsidiaries for a
Euro purchase price of approximately C
=200 million (approximately $275 million), subject to certain adjustments (the “Acquisition”).
The total value of the transaction, including debt assumed and or repaid, was approximately C
=305 million (approximately $415
million). Mapa Spontex is a global manufacturer and distributor of primarily baby care and home care products with leading market
positions in Argentina, Brazil and Europe in the core categories it serves. Its baby care portfolio includes feeding bottles, soothers,
teats and other infant accessories sold primarily under the Fiona®, First Essentials®, Lillo®, NUK® and Tigex® brands; and health
care products, including condoms sold under the Billy Boy® brand. Its home care portfolio includes sponges, rubber gloves and
related cleaning products for industrial, professional and retail uses sold primarily under the Mapa® and Spontex® brands. The
Acquisition is expected to expand the Company’s product offerings and distribution channels into new, attractive categories
and further diversify revenue streams and increase the Company’s international presence. The Acquisition is consistent with the
Company’s strategy of purchasing leading, niche consumer-oriented brands with attractive cash flows and strong management.
Mapa Spontex is reported in the Company’s Branded Consumables segment and is included in the Company’s results of operations
from April 1, 2010 (the “Acquisition Date”).
In addition, the Company completed three tuck-in acquisitions during 2010. On October 1, 2010, the Company acquired Aero,
a leading provider of premium, air-filled mattresses under brand names including Aero®, Aerobed® and Aero Sport®. The
acquisition of Aero is expected to expand distribution channels, as well as expand the Company’s current Coleman product
offerings of indoor and outdoor air beds and accessories. Aero is reported in the Company’s Outdoor Solutions segment and is
included in the Company’s results of operations from October 1, 2010. On December 17, 2010 the Company acquired Quickie, a
leading supplier and distributor of innovative cleaning tools and supplies. Quickie designs, manufactures and distributes cleaning
products including mops, brooms, dusters, dust pans, brushes, buckets and other supplies, for traditional in-home use, as well
as commercial and contractor-grade applications sold primarily under the leading brands Quickie Original®, Quickie Home-
Pro®, Quickie Professional®, Quickie Microban® and Quickie Green Cleaning®. The Quickie acquisition complements the Mapa
Spontex acquisition by combining Quickie’s leading domestic position in household stick and smallware cleaning supplies with
8