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.