Sunbeam 2002 Annual Report Download - page 5

Martin E. Franklin
Chairman and
Chief Executive Officer
company’s people to excel, despite macro economic
challenges. To ensure the financial flexibility required for
future growth, your company entered into a newly syndicated
$100 million senior credit facility and $150 million ten-year
senior subordinated notes that provides a non-amortizing
base of capital at favorable rates. These positive changes in
your company have resulted in a renewed interest in the
equity of Jarden and should allow us to continue to increase
the long-term value we can deliver to our shareholders.
Acquired Diamond Brands
In November 2002, Jarden announced it had entered into a
definitive asset purchase agreement to acquire the business of
Diamond Brands, which was completed during February 2003.
Diamond Brands is a leading manufacturer and marketer of
niche consumer products for domestic use including kitchen
matches, toothpicks, plastic cutlery, straws, clothespins and
wooden crafts, sold primarily under the Diamond® and
Forster® trademarks. Diamond Brands met our established
major acquisition criteria: leading market shares of niche
markets in branded consumables used in and around the
home, established EBITDA margins in excess of 15% and a
purchase price allowing immediate accretion to earnings from
the date of acquisition, before synergies. With the inclusion
of Diamond Brands, we have surpassed our internal goal of
generating over 90% of our total revenues from consumer
products related businesses by the end of 2003.
Invested in Organic Growth
To continue organic growth in our business we have allocated
significant incremental marketing funds in 2003 for launching
and promoting new product introductions. This effort has
been led by our new Chief Marketing Officer, whose role is
to define a strategy to drive organic growth across our
consumer products businesses.
We have strengthened our management ranks in 2002, not
only in sales and marketing, but also in technology through
the newly filled post of Chief Information Officer. In addition,
we have welcomed the addition of two experienced independent
directors to our Board, Irwin Simon, Chairman of Hain-
Celestial Group, and René-Pierre Azria, Managing Director
of Rothschild Inc. Their insights have already proved
valuable to the company.
Finally, all of the above has led to the start of recognition
on Wall Street. Two research houses initiated coverage of
Jarden in 2002 and a third began coverage in January 2003.
The company’s new strategic direction, as well as our strong
financial results, helped Jarden’s shares rise by over 200% in
2002, a performance that led to Jarden being listed as the
number one performing stock in 2002 according to Investors
Business Daily.
We are proud of your company’s performance in 2002. Much
of the credit is due to the 1,500 members of the Jarden team
and their outstanding efforts during 2002. We entered 2003
with considerable momentum and I look forward to reporting
our progress to you as the year unfolds.
Yours sincerely,
Martin E. Franklin
Chairman and
Chief Executive Officer
39% Home Vacuum Packaging
31% Branded Consumables
19% Plastic Consumables
11% Other
2002 SALES BY SEGMENT:
PG.3