Newell Rubbermaid the maker of consumer products said on Monday it was acquiring Jarden Corp a rival for $13.2 billion in a deal involving cash and stock. This will merge brands like Yankee Candle, Graco strollers and Sharpie markers.

For each share of Jarden, Newell Rubbermaid, based in Atlanta, will pay cash of $21 and 0.862 of one share in Newell Rubbermaid. This price represents a premium of 24% to where the stock at Jarden’s was trading prior to a report that said the companies had been talking about merging.

Newell Rubbermaid shareholders will have 55% of the new combined company that will be known as Newell Brands. The current CEO of Newell Rubbermaid Michael Polk will run the new company.

This tie up is expected to be finished during the 2016 second quarter and creates a consumer good giant worth $16 billion, said the two companies in a joint statement.

Both of the companies’ stock has surged over the past couple of year thanks to the strengthening economy and because of prior acquisitions that had been well-received by their investors.

Jarden, based in Boca Raton, Florida, was opened in 2001 and has grown to include over 120 brands. The products include Marmot athletic gear, Crock Pot cookers and Sunbeam irons.

In 1903, Newell Rubbermaid was founded and has expanded through many deals that include Cephalon pots and pans and Goody products for hair.

The company’s most significant purchase was made in 1999 for over $6 billion and that was Rubbermaid.

Newell Rubbermaid announced that it is expecting close to $500 million in cost savings per year over a period of four years and that this deal would add to its earnings immediately.

Shares of Jarden stock were up over 5% on the announcement of the merger during premarket trading, while Newell Rubbermaid shares were down about 2.3%.

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