In July, the Fool's James Early looked at stocks that combine the following: a small market cap, a boring industry, and a savvy Pac-Man-style acquisition strategy of adding a portfolio of brands. One of the companies included K2 (NYSE:KTO), a leader in outdoors products.

The other was Jarden (NYSE:JAH). However, Monday the company went beyond its approach of Pac-Man acquisitions and pulled off a megadeal. Jarden shelled out $745 million to purchase American Household. The firm will also assume $130 million in debt.

Jarden is not really a household name, but over the years, it has purchased many household brands. Examples include Crawford, Diamond, Forster, Hoyle, Kerr, VillaWare, and so on. These are not the kind of franchise brands from companies such as Colgate-Palmolive (NYSE:CL) and Procter & Gamble (NYSE:PG). Yet Jarden's portfolio of brands certainly generates nice cash flows.

In the deal for American Household, Jarden will add brands such as Coleman, First Alert, Healthometer, Mr. Coffee, Oster, and Sunbeam.

Sunbeam? Yes, American Household is the successor to the controversial Sunbeam, which had as its former CEO "Chainsaw" Al Dunlap. After much turmoil, the company had to file for Chapter 11 bankruptcy. But, no doubt, there was still a tremendous amount of value to the underlying businesses.

Typically, a company like Jarden will finance a cash purchase with debt. But Jarden has taken an innovative approach; that is, the company obtained a $350 million equity infusion from Warburg Pincus, a private equity firm. Consequently, the financial structure will not burden the balance sheet with excessive debt.

Initially, Jarden's stock surged on the news of the deal, reaching $39.15. But, by the end of trading, the stock closed at $35.55. True, the deal should lead to increased leverage with retailers and cross-selling opportunities. But this is not like Jarden's smaller deals; this a megadeal and poses possible risks, especially with the integration of the two companies.

Fool contributor Tom Taulli owns none of the shares mentioned in this article.