K2 skis changing ownership
By Matthew Townsend, BloombergBusiness
Newell Rubbermaid Inc. agreed to buy Jarden Corp., parent company of K2 skis, for about $15.4 billion, creating a consumer-products giant with a sprawling portfolio that will use its increased size to cut costs and bolster investment in its most-promising businesses.
The new company, called Newell Brands, will have $16 billion in sales, according to a statement. Jarden investors will receive cash and stock valued at about $60 a share — 24 percent higher than the closing price on Dec. 4, the last trading day before media reports said merger talks had begun. Newell will issue $5 billion of debt to complete the transaction and expects to keep its investment-grade debt.
The move is a bet that Newell can gain efficiency and clout with large vendors such as Wal-Mart Stores Inc. from Jarden’s more than 100 far-flung brands, including everything from Oster appliances and K2 skis to Yankee Candle. Newell Rubbermaid Chief Executive Officer Michael Polk, who will run the combined entity, is aiming to squeeze $500 million in costs out of the business within four years.
it’s not just K2 skis and snowboards, but also: 5150 snowboards, Atlas snowshoes, BCA back country equipment, Dalbello ski boots, Full Tilt ski boots, Line skis, Madshus XC, Marker, Marker ski wear, Marmot, Morrow snowboards, Ride snowboards, Tubbs snowshoes and Volkl. and a handful of other fishing and camping and sporting goods brands.