Sunbeam 2014 Annual Report Download - page 5

Fond childhood memories of a first Rawlings
baseball glove, that great camping trip in a Coleman
tent with a Coleman lantern lighting a game played
with Bicycle playing cards, or that special family
stew recipe prepared in a CrockPot slow cooker.
All these and many more happy memories come
from Jarden products. Our objective to bring the
best products to the market with the best value
proposition for consumers is at the heart of Jarden’s
DNA and is a key contributor to our success.
This past year’s strong organic sales growth is a
testament to the positive reception for our new
products by consumers. As in prior years, product
recognitions were numerous and broad, such as
Jarden’s receipt of two Edison Awards this year,
including one for our new home canning appliance,
the Ball FreshTECH Automatic Home Canning
System, winning in the Consumer Goods category.
The Winter Olympics showcased many Jarden
products with 145 competitors choosing to use
Jarden winter sports equipment in competition.
Impressively, nearly one third of them went on to
medal. Beyond awards, we meaningfully increased
our Fortune 500 ranking up 27 spots from 2013 to
#356 in 2014. We additionally moved up 79 spots
to #217 in Newsweek’s sustainability rankings.
While these awards and rankings demonstrate solid
momentum, as always we will strive to be better.
We continue to pursue acquisitions opportunistically
and 2014 was another year of successful, disciplined
acquisitions, while also focusing on integrating the
Q4 2013 Yankee Candle acquisition. Yankee Candle
performed well in 2014 and we look forward to
their continued growth and contribution to our
business in 2015. Our most meaningful acquisition
in 2014 was the third-quarter acquisition of Rexair,
which produces the Rainbow, a premium, high-
performance floor care system. In Q2, we acquired
Cadence, a Brazilian small appliance manufacturing
company that should further supplement our
category reach and geographic breadth in Brazil.
A common strategic theme to our acquisitions is
that they leverage Jarden’s portfolio strengths, but
push us further and faster. To this end, we pursued
two smaller-scale CAPEX-type acquisitions in 2014:
accelerating Yankee Candle’s Western European
expansion by buying Millefiori, an Italian-based
premium candle and fragrance company; and
agreeing to purchase Dalbello, an Italian ski
boot business to enhance our entry into the
ski boot category.
Effective and active capital deployment is a
hallmark of Jarden. Beyond acquisitions, Jarden
was active throughout 2014 in the capital markets
arena. Jarden repurchased over $200 million of its
own shares in 2014. We believe that an acquisition
of ourselves, or share repurchase, remains a
fundamentally attractive part of our capital
deployment, particularly when our trading multiples
remain below our consumer peers. In November,
reflecting our future confidence, we executed a
3-for-2 stock split, our fifth since 2002.
In this past year’s historically low interest rate
environment, we took several steps to flatten and
extend out our debt maturity profile. In March,
we issued $690 million of senior subordinated
convertible notes due 2034. The notes bear an
annual interest of 1 1/8% with a conversion price
that was set at a 22 1/2% premium from the March
11th closing price. The coupon Jarden achieved was
the lowest across all companies and industries for
our rating for 10-year plus convertible debt (since
2007) with proceeds facilitating share repurchase,
acquisition financing, and higher coupon debt
redemption. In July, we issued EUR 300 million of
senior notes due 2021 with an annual interest rate of
3 3/4%. In Q4, we refinanced and extended our credit
facility. In 2014, Jarden paid down approximately
$480 million of debt through redemption of 7 1/2%
USD and EUR senior subordinated 2020 notes.
We believe that our 2014
performance has positively
contributed to the achievement of
our longer-term performance goals.
These goals, as originally presented in 2013, include:
• Delivering Long-Term Average Organic Sales
Growth of 3–5%
• Continuing to Leverage SG&A
• Expanding Segment Earnings Margins to 15%
by Year-End 2018
Jarden Corporation Annual Report 2014 3