by The Editors on September 8, 2016
Newell Brands, the company that bought/merged with Jarden Corp (parent of K2 Sports/Ride Snowboards) and spawned all those “Rubbermaid snowboard” jokes back in December 2015, has announced that it plans to divest itself of “some businesses” that generate “$250 million to $300 million in annual revenue,” according to story on Sporting Goods Business Online.
Newell Brands has not said what businesses it plans to exit, but some speculate it will divest winter sports brands picked up April 15, when it closed its acquisition and merger with Jarden Corp. . . “Ideally I would like to sell these assets versus simply walking away from them,” company CEO Michael Polk told his audience Thursday. “Some of them are the kinds of businesses that would be difficult to sell and therefore, we should just shut down because they create no value for you and they are a distraction for us.”
Hmmm, companies that “create no value” and are “a distraction?” Wonder which “winter sports brands” people are speculating about? Could it be K2 Sports? Guess we’ll all have to wait and see.
[Link: SGB Online]
by The Editors on May 26, 2017
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.
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by The Editors on October 4, 2016
In an announcement today (October 4, 2016) Newell Brands stated that as part of their plans to reportedly “sharpen strategic focus for accelerated growth” they are putting their winter sports businesses up for sale. What are these winter sports businesses? Well, K2 Sports is one of them. You know, K2 Snowboards, Ride Snowboards, Morrow Snowboards, and 5150.
The businesses held for sale represent about 10 percent of the portfolio and include the vast majority of the Tools Segment, the Winter Sports businesses within the Outdoor Solutions Segment, the Heaters, Humidifiers, and Fans businesses within the Consumer Solutions Segment, and the Consumer Storage Container business within the Home Solutions Segment.
Newell hopes to have them all sold by early 2017. Anyone? Maybe they’d make a deal for someone who wants to grab humidifiers, fans, and a few snowboard brands? For the complete press release, please follow the jump.
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by The Editors on December 14, 2015
Newell Rubbermaid, a company that sounds more like a fetish doll manufacturer than a consumer brands company, has just purchased K2 and Ride Snowboard’s parent company Jarden today (December 14, 2015) in a deal worth more than $15 billion according to a story on Forbes.com.
The deal will create a combined firm with $16 billion in annual revenue, owning brands ranging from Sharpie, Paper Mate and Graco strollers to Coleman, Sunbeam, Oster and Marmot. . . . Jarden shareholders will receive $21 a share in cash and 0.862 shares of Newell Rubbermaid. Combining Jarden with Newell Rubbermaid will fund the deal with cash on hand and new debt, levering itself to 3.0 to 3.5 times, but maintaining investment grade credit ratings. The acquisition is forecast to immediately bolster Newell’s earnings per share by double digits when it closes, expected in mid-2016.
Those who love corporate snowboarding should take this as a cue to buy more K2 and Ride products as soon as possible. Maybe even for Christmas.
[Link: Forbes]
