The deal increased scale globally for Newell Brands, giving it more bargaining power with distributors and the ability to compete oversees and digitally. Newell Brands is now 2.2 times larger with its key strategic customers and 2.4 times as large in the company's top-12 geographies.
Additionally, many of the companies' brands complemented one another. Both Jarden and Newell-Rubbermaid catered to baby care, commercial products and kitchenware.
Even better, when Newell Brands said it expects to see about $500 million in cost synergies, Cramer thinks that number is conservative. Typically with large mergers within the packaged goods sector, there is a 5 percent total reduction in costs, which could mean more like $700 million in savings for Newell Brands.
Management was also confident that the deal would add significantly to earnings once the businesses are done integrating. The old Newell-Rubbermaid was very disciplined with keeping a narrow focus, though Jarden wasn't willing to sell extraneous brands. Cramer wouldn't be surprised to see Newell Brands sell off some of the tepid businesses it inherited from Jarden now.
As for analyst concerns that it would be too hard for Newell-Rubbermaid to absorb Jarden for the complexity, Cramer disagreed. Both companies were working on acquisitions at the time the merger was announced. Newell was buying Elmer's and Jarden was buying Jostens.
Thus, the fact that they managed to get the merger done while handling other deals impressed Cramer, as it speaks to the ability to make the combined deals work.
On its latest conference call in July, the company's CEO Mike Polk said it could deliver on the high end of the range for a $50 million to $80 million full-year cost synergy guidance.
"That sounds very good to me, and if the commentary sounds similar when Newell Brands reports again a month from now, than I think the bears will need to eat some serious crow," Cramer said.
Ultimately Cramer found Newell Brands a cheap consumer goods stock with a 14.5 percent long-term growth rate, great management and fabulous cost-saving catalysts in the pipeline.