Acquisitive consumer products company Jarden Corp. said Wednesday, April 25, it is buying sporting goods maker K2 Inc. in a cash and stock deal worth about $1.2 billion.
Under the terms, Jarden, which makes popular household products including Sunbeam appliances, will pay $15.50 per share comprising $10.85 per share in cash and 0.1086 of a Jarden share for each K2 share.
The price reflects a premium of 23% over the closing K2 share price of $12.58 on Tuesday and values K2's equity at $765.9 million. Including assumed debt, the deal comes in at $1.2 billion.
Jarden said the acquisition reflects its strategy of purchasing niche consumer-oriented brands.
Jarden said it expects the addition of K2 — whose brands include Penn, Rawlings and Stearns — will add to its earnings. K2 is best known for its own brand of skis, named after the second-highest mountain in the world.
I don't think K2's operations will change much. Just some interesting news.