SUNBEAM PRODUCTS, INC.

  • Overview

More than 100 brands of consumer products for inside and outside the home make Jarden beam. It makes a wide variety of branded consumer products, including Sunbeam and Oster appliances, Coleman outdoor gear, and First Alert home safety products. It also makes Ball canning jars, Diamond matches and plastic cutlery, Loew-Cornell art supplies, K2 snowboards, and Bee and Bicycle brand playing cards. Jarden sells its products primarily to retailers, such as Wal-Mart, Dick's Sporting Goods, and Target. It also supplies copper-plated zinc penny blanks to the US Mint and the Royal Canadian Mint. To further diversify its products portfolio, Jarden acquired the Mapa Spontex baby care and home care businesses from TOTAL.

Geographic Reach

New York-based Jarden Corporation rings up about 60% of its sales in the US. The company manufactures its products in China, Europe, Latin America, and North America. It also sources goods from third parties, primarily in Asia.

Operations

Jarden operates its business through four segments: Outdoor Solutions, Consumer Solutions, Branded Consumables, and Process Solutions. Its largest business (39% of 2012 sales) is Outdoor Solutions, which focuses on making and marketing active lifestyle and outdoor-related products such as air beds, camping stoves, tents, inflatable boats, team sports equipment, and all-terrain vehicle gear, among other items. Jareden's Consumer Solutions segment (nearly 30% of sales) is responsible for manufacturing and distributing household products for making coffee, purifying the air, and slow-cooking meals. Branded Consumables concentrates on the basics, such as brooms, brushes, kitchen matches, arts and crafts paint brushes, home canning jars, and smoke and carbon monoxide alarms. It contributes about a quarter of the company's sales. Process Solutions (about 5% of sales) makes and distributes a range of plastic products including closures, contact lens packaging, medical disposables, and plastic cutlery.

Sales and Marketing

Wal-Mart Stores, which purchases products from all of Jarden's business segments, is the company's #1 customer, accounting for approximately 20% of annual sales. Other leading customers include: Academy Sports & Outdoors, Amazon.com, Bed Bath & Beyond, Canadian Tire, Costco, The Home Depot, Lowe's, and Target.

Advertising expenses in 2012 were $156 million compared with $143 million in 2011.

Financial Performance

Jarden's 2012 sales were essentially flat compared with 2011: rising just 0.2%, to approximately $6.7 billion. Net income rose 19% over the same period. The company blamed unfavorable foreign currency translation for a decrease in net sales of about 2%. Jarden's largest business, Outdoor Solutions, posted a 3% drop in annual sales, while its other businesses posted modest gains in year-over-year sales. Increased demand for the company's products in Latin America (coupled with expanded distribution and new products) buoyed the Consumer Solutions segment. The tiny Process Solutions segment saw its sales jump 7%, to $377 million in 2012 versus $351 in 2011.

2012 marked the third consecutive year of rising sales at Jarden, and the second straight year of increasing profits, as acquisitions and increased global demand fuel growth. Indeed, international sales increase by 0.8% in 2012 versus 2011, while sales at home fell slightly.

Strategy

Pumping out new products is what keeps Jarden's bottom line healthy. As part of its strategy, the outdoor products maker updated its Coleman line with several new and refined products, such as battery-powered lanterns that increase light output and run time. In 2011 the firm expanded its line of Instant tents, which can be set up in up to 60 seconds, to include the largest shelters. Its Consumer Solutions segment is extending its reach of its core products to cater to trendy niche markets in consumer health, pet products, at-home food preparation, and single-serve coffee. As a result it expanded its Keurig single-serve coffee offering and introduced a new FoodSaver model for hunters and fishermen. Across its Branded Consumables business, Jarden focused on aerl-brand air filters and purifiers and Sunbeam pet electronics used to train pets.

Mergers and Acquisitions

Jarden has maintained a steady pace of acquiring companies with noteworthy names to add value to its stable of brands. Most recently, it agreed to buy Yankee Candle Company from private equity firm Madison Dearborn Partners for about $1.75 billion in cash. The sale is expected to close in late 2013. Previously, Jarden purchased Paris-based Mapa Spontex for $415 million. The French manufacturer's baby care products (such as baby bottles and nipples) carry the NUK, Tigex, and Lillo brands, its household cleaning items (sponges, rubber gloves) bear the Mapa and Spontex names, and its health care segment makes condoms under the Billy Boy name. The purchase has exposed Jarden to new product segments and helped to boost revenue from foreign markets, extending the firm's presence beyond North America to include Europe and Latin America (Brazil and Argentina). Jarden also completed two smaller purchases in 2010 with a combined value of about $270 million: Aero Products International, a maker of air-filled mattresses, and Quickie Manufacturing Corp., a supplier and distributor of cleaning tools and supplies.

Ownership

Investment firm FMR LLC owns about 11% of Jarden Corporation's shares.

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SUNBEAM PRODUCTS, INC.


2381 Nw Executive Center Dr
Boca Raton, FL 33431-8560
Phone: 1 (561) 912-4100
Fax: 1 (561) 9124567
www.jardencs.com

STATS


  • Employer Type: Unknown
  • Chairman: Patricia Bassett
  • Pres-ceo: Andy Hill
  • Managing Director: Mike Yates

Major Office Locations

  • Boca Raton, FL