By Lisa Kerner
Charlotte, N.C., April 25 - Jarden Corp. entered into a definitive merger agreement to acquire K2 Inc. for $10.85 per share of K2 common stock in cash and 0.1086 of a share of Jarden common stock.
The transaction, valued at $15.50 per share, or about $1.2 billion, including debt, is expected to close in the third quarter of 2007.
Both companies' boards of directors unanimously approved the deal.
"We are enormously excited about [Wednesday'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," Jarden chairman and chief executive officer Martin E. Franklin said in a company news release.
"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."
K2 is a branded consumer products company based in Carlsbad, Calif.
Jarden is a Rye, N.Y., provider of niche consumer products used in and around the home.
| Acquirer: | Jarden Corp.
|
| Target: | K2 Inc.
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| Transaction total: | $1.2 billion
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| Price per share: | $10.85 in cash and 0.1086 of a Jarden share
|
| Announcement date: | April 25
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| Expected closing: | Third quarter of 2007
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| Stock price for acquirer: | NYSE: JAH; $43.10 on April 24
|
| Stock price for target: | NYSE: KTO; $12.58 on April 24
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