K2 Snowboards, Ride Snowboards, and the rest of the Newell Brands winter sports businesses have a new owner. This time they’ve been snagged by New York based private equity firm Kohlberg & Company for a reported $240 million. From the press release:
Net sales for the divested business were approximately $330 million during 2016 and annual adjusted EBITDA for the divested business is approximately $25 million. The transaction is expected to close late in the second quarter or early in the third quarter of 2017, subject to customary closing conditions, including regulatory approval.
Not much to see here. Kohlberg is just another multi-billion dollar PE group that buys relatively boring companies and creates a quality return for their investors. We can’t even make any Rubbermaid jokes this time around. Other brands sold include Volkl, Marker, Dalbello, Madshus, Line, Full Tilt, Atlas, Tubbs, and BCA. For the official release, please follow the jump.
Newell Brands Announces Agreement to Sell Winter Sports Business
May 26, 2017 HOBOKEN, N.J.– Newell Brands Inc. (NYSE:NWL) announced today that it has signed a definitive agreement to sell its Winter Sports businesses, inclusive of Völkl®, K2®, Marker®, Dalbello®, Madshus®, Line®, Full Tilt®, Atlas®, Tubbs®, Ride® and BCA® to Kohlberg & Company, L.L.C., a leading private equity firm specializing in middle-market investing. The sale of the Winter Sports businesses is part of Newell Brands’ ongoing strategy to accelerate growth by simplifying and strengthening our portfolio.
Gross proceeds from the divestiture are expected to be $240 million, subject to customary working capital and transaction adjustments. Net sales for the divested business were approximately $330 million during 2016 and annual adjusted EBITDA for the divested business is approximately $25 million. The transaction is expected to close late in the second quarter or early in the third quarter of 2017, subject to customary closing conditions, including regulatory approval. Goldman Sachs & Co. LLC acted as financial advisor to Newell Brands on the transaction.
Additionally, Newell Brands has signed a definitive agreement to sell its Zoot® & Squadra® apparel brands in a separate transaction.
About Newell Brands
Newell Brands (NYSE: NWL) is a leading global consumer goods company with a strong portfolio of well-known brands, including Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer’s®, Coleman®, Jostens®, Marmot®, Rawlings®, Oster®, Sunbeam®, FoodSaver®, Mr. Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®, NUK®, Calphalon®, Rubbermaid®, Contigo®, First Alert®, Waddington and Yankee Candle®. For hundreds of millions of consumers, Newell Brands makes life better every day, where they live, learn, work and play.
About Kohlberg & Company
Kohlberg & Company, L.L.C. (“Kohlberg”) is a leading private equity firm specializing in middle-market investing. Since its inception in 1987, Kohlberg has organized eight private equity funds, through which it has raised $7.5 billion of committed equity capital. Over its 30-year history, Kohlberg has completed 70 platform investments and more than 150 add-on acquisitions, with an aggregate transaction value in excess of $10 billion. For more information, please visit www.kohlberg.com.
