Ride & K2 Snowboards are to be sold to Kohlberg & Company, a private equity firm, along with all of former parent company Newell Brands Inc’s winter sports brands. Gross proceeds from the divestiture are expected to be $240 million. Sales from the winter sports portfolio were about $330 million in 2016.
Press Release: Newell Brands Inc. (NYSE:NWL) announced today that it has signed a definitive agreement to sell its Winter Sports businesses, inclusive of 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 our portfolio.
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.