S&P: Jarden on negative watch

Standard & Poor's said it placed its ratings on Jarden Corp., including its B+ corporate credit and senior secured ratings and B- subordinated debt rating, on CreditWatch with negative implications.

The CreditWatch placement follows Jarden's announcement Monday that it had entered into a definitive agreement to acquire American Household Inc., the parent of The Coleman Co. and Sunbeam Products Inc., for $745.6 million plus assumption of debt. The company produces small appliances, camping equipment, and other products under the Coleman, Mr. Coffee, Oster, and Sunbeam brands, among others.

Also announced Monday, Warbug Pincus, a private equity firm, will likely invest $350 million in equity and preferred equity in Jarden to facilitate the transaction.

Although S&P said it believes that the planned, partially debt-financed acquisition would broaden Jarden's narrow niche oriented product portfolio, the firm will be challenged to successfully integrate such a large acquisition of a company operating in a highly competitive markets.

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