Cramer: Newell Rubbermaid- Jarden deal is powerful

The merger between Newell Rubbermaid and Jarden — which could lead to a $16 billion consumer goods company — has a lot of good about it, said CNBC's Jim Cramer on Monday.

"The combination of brands is pretty powerful," he told CNBC's "Squawk on the Street." "I like this deal."

Cramer said that a lot of the motivation for this merger is about gaining more control from big box stores and discounters, like Wal-Mart.

"Almost every major household aisle is going to be this company. You're going to have a hard time finding stuff that isn't this company."

Newell Rubbermaid said it will buy Jarden in a cash-and-stock deal that could lead to annual cost savings of about $500 million over four years.

Jarden shareholders will receive $21 in cash and 0.862 shares of Newell Rubbermaid stock for each share they own. The implied total value is $60 per share. Newell Rubbermaid shareholders will own about 55 percent of the combined business.

The combined company will be called Newell Brands. Its portfolio will include Paper Mate, Sharpie, Elmer's, Rubbermaid and Graco, among other brands.

"This is a winning combination of brands that are complementary; they are going after the same customers," Cramer added. He did say that the synergies came in a little bit lower than he had hoped for.

— The AP contributed to this report.