CPG Recruiter Weighs in on Newell Rubbermaids Jarden Acquisition

Newell Rubbermaid Inc. recently completed its $15.4 billion acquisition of Jarden Corp., and the tentacles of such a large combination of global consumer goods organizations might, naturally, stretch into Northwest Arkansas.

Scott Crossett, a partner at executive search firm Cameron Smith & Associates in Rogers, keeps a close eye on the local supplier community. He says there hasn’t been any announcement regarding integration of offices thus far, but suggested that recent history of M&A activity in the consumer goods market indicates it’s a strong possibility.

“Companies who go through mergers such as this stick to the company line initially that nothing will change in the short term,” Crossett said. “When things do start to change, however, it happens very quickly.”

Jarden employs about 90 people locally, and the company recently built a new $7 million office building off Rainbow Curve in Bentonville for its Wal-Mart Stores Inc./Sam’s Club team. Crossett says the 45,000-SF building could hold another 40 people, if necessary.

Newell Rubbermaid has about 38 local employees at its office on I Street in Bentonville. Crossett said there’s room for more, but not enough for the entire Jarden team.

“History says there will inevitably be consolidation for the first 24 months as the companies tighten expenses to show quick profitability and cost savings through the deal, to give the shareholders what they want to see,” Crossett said. “Once the companies get to a lean point, the focus will turn to growth, but the first step is to almost always get lean, eliminate overlap and then assess needs. My speculation is that Newell Brands will follow a similar path.”