Madison Dearborn Partners to acquire The Yankee Candle Company for $1.7bn


The Yankee Candle Company has entered into a definite merger agreement under which Chicago-based private equity firm Madison Dearborn Partners will acquire all of the outstanding shares of Yankee for approximately $1.4bn in cash. The total value of the transaction, including assumed debt, is approximately $1.7bn.

Yankee Candle Company is a designer, manufacturer, wholesaler and retailer of premium scented candles. It has 17,454 North American store locations. The company sells its products also through a growing base of company-owned and operated retail stores (409 located in 42 states), direct mail catalogues, its internet website, international distributors and to a European wholesale customer network of approximately 2,428 store locations.

The board of directors of Yankee has approved the merger agreement and has resolved to recommend that Yankee’s shareholders adopt the agreement.

If the transaction goes ahead, Yankee shareholders will receive $34.75 in cash for each share of Yankee common stock they hold, a premium of over 57 per cent to the closing price of the stock the day prior to the company’s announcement regarding its review of strategic alternatives.

Madison Dearborn Partners closed its latest fund, Madison Dearborn Capital Partners V, on $6.5bn earlier this year.

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