Acquired by K2: Marmot Mountain Ltd announced today it had entered into a
merger agreement with K2 Inc (NYSE: KTO). The transaction, subject to
regulatory review and other customary conditions, is expected to be completed
by June 30, 2004. The purchase price is $84 million in a combination of K2
stock and cash, plus the assumption of seasonal working capital debt.
Simultaneously, K2 announced similar merger agreements with Völkl Sports
Holding AG and The Marker Group.
Mr. Richard Heckmann, Chairman
and Chief Executive Officer of K2, said, “The Marmot acquisition is exciting.
It positions K2 with a scaleable platform in the outdoor technical apparel
market. One of K2’s objectives has been to build a premium technical apparel
platform that would compliment its reputation for performance products in
sporting goods. Combined with the recent announced Ex Officio acquisition, we
are confident that we will be able to successfully grow these businesses and
expand K2’s presence in technical outdoor apparel.”
In commenting on the merger,
Steve Crisafulli, President and CEO of Marmot, said, “In recent months, we
made the decision to investigate selling Marmot to a partner that understood
our brand and would encourage and assist us in continuing our growth and
strengthening our future. In our discussions, it became obvious that K2 was by
far the best choice as a partner for Marmot for the future. Their vision,
resources and management team will help us take advantage of the tremendous
opportunities we see for Marmot.”
Marmot, founded in 1974, is a
world leader in the premium technical outdoor apparel and equipment markets.
Its products are distributed in 34 countries. Marmot product lines include
performance jackets, technical rainwear, expeditions garments, wind barrier
fleece, softshells, skiwear, gloves, tents, packs and sleeping bags.
K2 is a publicly held company
(NYSE: KTO) with 2003 sales in excess of 700 million dollars. K2 has
distribution and marketing throughout the world. K2 is a diversified mix of
thirty-five leisure and team sport brands, from snowboards (Ride) and
snowshoes (Tubbs), to travel clothes (Ex Officio) and sportswear (Planet
Earth), to water sports (Stearns). It is the number one brand of skis in the
US. It is the number one brand of fishing rods and reels in the US
(Shakespeare). K2 offers products in skiing, snowboards, baseball, softball,
snowshoeing, water sports, in-line skating, mountain biking, and backpacking.
Digital Altimeter, Barometer, Compass and Thermometer. Time/Date/Alarms.
Chronograph with 24 hour working range. Timer with stop, repeat and up
function. Rotating Bezel. Leveling bubble. Carabiner latch. E.L. 3 second
backlight. Water resistant. 4" x 2-1/4" x 3/4" 2 oz. Requires 1 CR2032
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