K2 Inc. Announces the Acquisition of Three Leading Companies in Winter Sports and Outdoor Apparel
CARLSBAD, Calif.--(BUSINESS WIRE)--June 16, 2004--K2 Inc. (NYSE:KTO):
-- Volkl Sports -- premium skis
-- Marker Group -- leading ski bindings
-- Marmot Mountain Ltd. -- premium outdoor technical apparel and equipment
K2 Inc. (NYSE:KTO) announced the signing of three definitive acquisition agreements in which Volkl Sports Holding AG, The Marker Group and Marmot Mountain Ltd. would become wholly owned subsidiaries of K2. The transactions, which are subject to regulatory review and other customary conditions, are expected to be completed by mid-July, 2004. K2 indicated that it expects the transactions to be accretive to its earnings in 2004 and subsequent years.
'The Volkl and Marker acquisitions are very significant in that they continue our strategy of building a truly global winter products platform for K2,' said Richard Heckmann, K2's chairman and chief executive officer. 'The ski business is increasingly driven by a few global players with integrated ski and binding systems, and this transaction will solidify K2's leading position on a global basis. K2, Volkl and Marker are leading authentic brands and together they will constitute the most unique and powerful winter products platform in the industry today. The addition of Volkl and Marker's strong European management team gives us a unique opportunity to combine our significant European operations for the benefit of both customers and employees. Volkl's outstanding heritage of German engineering excellence will be a strong addition to our worldwide product offering in the ski industry as will their superb manufacturing facilities.'
Mr. Heckmann continued: 'Equally exciting is the Marmot acquisition, which 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 complement its reputation for performance products in sporting goods. Combined with the recently announced acquisition of Ex Officio, we are confident that we will be able to successfully grow these businesses and expand K2's presence in technical outdoor apparel. With 35 major brands across many of the major sporting goods markets, the opportunity to combine the technical high-end apparel expertise of Marmot and Ex Officio with K2's leading equipment brands and broad retail distribution will present internal growth possibilities for some time.'
