In the world of ski-biz related M&A (mergers and acquisitions) the news is this: the same company that owns Baby Jogger and Rubbermaid no longer owns K2, Volkl, Marker and a host of other brands we all love. After shopping their snowsports businesses for nearly a year since the merger with former owner, Jarden, Newell has found a new owner for their winter hard goods businesses. However the company will hold on to Marmot, the outdoor clothing line.
Jarden, which merged with Newell a year ago, had owned K2 and a number of other ski-related brands since 2007. According to the Denver Post, K2 and Volkl account for nearly a third of the $260 mllion alpine ski market in the U.S.
Newell Brands Inc. (NYSE:NWL) announced on May 26 that it signed a definitive agreement to sell its winter sports businesses, including 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 their portfolio, a release stated.
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.