A New Jersey company has agreed to pay $75 million for Chesapeake Bay Candle, a maker of candles and fragrances that started in the Annapolis home of Chinese immigrants.
Newell Brands of Hoboken said Thursday it has completed the purchase of the brand from its founders, David Wang and Mei Xu. Chesapeake Bay Candles is based in Rockville and operates a manufacturing plant in Glen Burnie.
“We’re thrilled to add this leading developer, manufacturer and marketer of premium candles and home fragrance products to our industry-leading Home Fragrance Division. Focused on consumer wellness and natural fragrance, we believe it to be a strategic fit as we look to grow this category in our portfolio,” said a company spokesman.
Newell Brands is a global consumer goods company that owns a number of well-known brands, including Paper Mate, Sharpie, Elmer’s, Coleman, Mr. Coffee Rubbermaid and Yankee Candle.
Company officials said the purchase will allow for the expansion of Chesapeake Bay Candle’s digital content to attract visitors to buy online. Xu and other members of the Maryland firm will join the new owners’ Home Fragrance Division as part of the purchase.
Chesapeake Bay Candle is a developer, manufacturer and marketer of premium candles and other home fragrance products. The company has annual net sales of approximately $55 million.
The transaction is subject to customary closing conditions and will be funded from cash on hand at the time of closing, which is expected later this year, Newell Brands said in announcing the deal. No information was available on plans for the plant in Glen Burnie.
Xu came to the United States from China at age 23 to study journalism at the University of Maryland. She and Wang started the company in 1994 by making candles in empty soup cans in the basement of their Annapolis home. They moved their company, Pacific Trade International, to Rockville and opened two factories in Asia to make Chesapeake Bay Candle, a popular home fragrance brand, and Blissliving Home.
They opened a 125,000-square-foot factory, warehouse and distribution center off Ordnance Road in 2011. The facility employs 100 people.
Chesapeake Bay Candle has been named twice by Inc. magazine as one of America’s fastest growing privately owned companies, according to the company’s website.
The company initially set up manufacturing operations in China in large part due to inexpensive labor costs. Xu started discussing moving the plant to the United States in 2008.
Neither Xu nor Wang could be reached for comment.
