Yankee Candle Fires Up $300 Mln Dividend for Madison Dearborn

The dividends just keep rolling in.

Yankee Candle Co., which is backed by Madison Dearborn Partners, announced today its owners will get a $300 million payout.

YCC Holdings LLC, the indirect parent of Yankee Candle, intends to issue $300 million of senior notes in a private placement, according to a statement Wednesday. YCC expects to use the proceeds to make a distribution to Class A shareholders of Yankee Candle Investments.

I called Madison Dearborn to find out if they will indeed receive the proceeds from the YCC private placement. However, MDP’s offices were closed due to the snow storm pummeling Chicago. Harlen Kent, Yankee Candle’s CEO, confirmed to me via cell phone that YCC will use net proceeds to pay a dividend to Madison Dearborn. “That’s net of fees,” Kent says. “It’s around $300 million.”

In 2007, Madison Dearborn acquired Yankee Candle for about $1.4 billion. The PE firm invested about $433.1 million equity in the deal, according to an April 2010 regulatory filing. Yankee Candle’s management also owns a stake.The South Deerfield, Mass.-based company sells scented candles like Bahama Breeze and Early Sunrise.