Jarden is known for brands such as Crock-Pot, Mr. Coffee and Coleman camping gear. Yankee Candle is best known for its various scented and seasonal candles and accessories.
Jarden Corp. founder and CEO Martin Franklin said in a statement Tuesday that this is the Rye, N.Y.-based company's first significant acquisition since April 2010.
Yankee Candle President and CEO Harlan Kent said the buyout gives Yankee Candle the resources and scale to strengthen its existing product development and distribution capabilities.
Yankee Candle will become a part of Jarden's branded consumables division, which will now make up about 35 percent of the company's total sales.
Jarden anticipates funding the acquisition with available cash, common equity and the remainder with a mix of bank debt and bonds.
The deal with Yankee Candle Investments LLC's owner, private equity firm Madison Dearborn Partners LLC, is expected to close early in the fourth quarter.