Jarden Corporation and ski manufacturer K2 Inc. have signed a definitive merger agreement under which Jarden will acquire K2.
JARDEN CORPORATION and ski manufacturer K2 Inc. have signed a definitive merger agreement under which Jarden will acquire K2.
    Under the terms of the agreement, Jarden will pay $10.85 per share of K2 common stock in cash and will issue 0.1086 of a share of Jarden common stock for each share of K2 common stock outstanding as of the closing. The cash and Jarden stock to be issued in the transaction has a combined value of approximately $15.50 per K2 share.
    The total enterprise value of the transaction, including the assumption or repayment of indebtedness, is approximately $1.2 billion. The transaction is expected to be accretive to Jarden’s earnings and to close early in the third quarter of this year.
    K2’s presence in the specialty and multi-store sporting goods, marine and outdoor retail channels and proven international presence, combined with its focus on new product introductions and market innovations, should provide Jarden with significant growth opportunities and the ability to expand into adjacent markets. K2’s primary business lines would be reported through Jarden’s Outdoor Solutions segment upon closing of the transaction.
    Martin E. Franklin, Jarden’s chairman and CEO, said, “We are enormously excited about today’s announcement as it marks another important step in our planned and disciplined growth strategy as a world-class, diversified, niche-oriented consumer products company. Adding K2’s broad portfolio of leading brands to our portfolio would create cross-selling opportunities both domestically and internationally, would expand our presence in specialty channels, would further diversify our products, revenues and earnings, and would create additional scale to leverage in our supply chain, distribution, manufacturing and sourcing networks.”
    Richard J. Heckmann, K2’s executive chairman of the board, said, “We believe that Jarden is the perfect strategic partner for us. Combining our world-renowned brands with Jarden’s scale and innovative resources should bring tremendous value to our employees, retail partners and customers. I am extremely proud of our employees’ accomplishments over the last five years, and I am excited about the road ahead for K2 as part of the Jarden family.”
    The board of directors for both companies have unanimously approved the transaction, which is expected to close during the third quarter of 2007, subject to Hart-Scott-Rodino approval, the approval of K2’s stockholders and other customary closing conditions.