Yankee Candle to be sold to Chicago firm

Yankee Candle Co. of Deerfield said today that it has entered into a definitive merger agreement under which a Chicago private equity firm will acquire all outstanding Yankee stock shares for $1.4 billion in cash.

The buyer is a unit of equity firm Madison Dearborn Partners.

The total value of the transaction, including assumed debt, is $1.7 billion.

Under the deal, Yankee shareholders will receive $34.75 in cash for each share of Yankee common stock they hold; that reflects a premium of 57 percent to the closing price of the stock July 25, the last trading day before Yankee disclosed that it was reviewing strategic alternatives.

"We are delighted to partner with (Yankee chief executive) Craig (Rydin) and Yankee Candle management to help build on Yankee's brand strength and to capitalize on the significant growth opportunities ahead," Madison Dearborn said in a statement.
(By Chris Reidy, Globe staff)