Newell Rubbermaid Inc. (NYSE: NWL) agreed to buy Jarden Corp. (NYSE: JAH) for about $13.2 billion, adding brands like K2 Skis and Yankee Candle to its stable of household goods to create a consumer-products giant with $16 billion of sales.

Newell Rubbermaid has been restructuring its portfolio through M&A lately. The company has agreed to acquire Elmer’s Products; It sold its Endicia division to Stamps.com; and in 2013, Newell Rubbermaid sold five hardware brands to Nova Capital.

Jarden holders will receive cash and stock valued at about $60.03 a share, according to a statement from the companies Monday. That’s 24 percent higher than the closing price on Dec. 4, the last trading day before media reports said merger talks had begun. Newell Rubbermaid stockholders will own 55 percent of the combined company, which will be run by Newell Rubbermaid Chief Executive Officer Michael Polk and aims to achieve $500 million in cost savings within four years.

The new entity will be called Newell Brands. Jarden’s more than 100 brands include Oster appliances. Newell, meanwhile, has Graco strollers, Sharpie pens, Rubbermaid and many others.

Jarden has been described as a publicly traded private- equity firm because of its penchant for buying brands and improving them. It has acquired about 30 companies since its founding in 2001, with the latest coming in October when it agreed to pay about $1.5 billion for Visant Holding Corp., which owns the school-memorabilia maker Jostens.

Jarden’s approach was conceived by veteran dealmaker Martin E. Franklin. In 2000, he and long-time partner Ian Ashken, tried and failed to acquire Alltrista Corp., a troubled manufacturer of plastics. After pushing for seats on the board, Franklin was named CEO and Ashken took the role of the chief financial officer. That company became Jarden, where Franklin now serves as executive chairman. Franklin and Ashken will both serve on the board of the combined company.

Newell agreed to buy Rubbermaid Inc. for about $6 billion in 1998.

 

- Additional reporting by Demitri Diakantonis