As summer arrives in the United States, Newell Brands has decided to follow the season by agreeing in principal to ditch their winter sports holdings. Those holdings include K2, Dalbello, Madshus, Marker, Volkl, Full Tilt, and Atlas snowshoes among others.
This morning, MarketWatch is reporting that the consumer package good company sold its snow sport portfolio to the New York based private equity firm, Kohlberg & Company for an estimated $240 million.
Newell Brands’ winter sports offerings generated roughly $330 million in 2016.
Obviously the big name in this deal is K2 but what exactly will happen to the company following Newell Brands’ selloff is uncertain. For one, Kohlberg & Company is a much smaller firm and executives could immediately make moves to bring K2 back to its standing as one of the best ski companies in the world– let alone North America. Surely having a parent company whose #1 motivation is not to sell the company at wholesale will help achieve that end.
Newell Brands Official Statement
“The sale of the Winter Sports business, inclusive of Völkl®, K2®, Marker®, Dalbello®, Madshus®, Line®, Full Tilt®, Atlas®, Tubbs®, Ride® and BCA® to Kohlberg & Company, LLC is part of Newell Brands’ ongoing strategy to accelerate growth by simplifying and strengthening our portfolio. As previously announced in October, Newell Brands made the decision to hold these businesses for sale as part of its Growth Game Plan strategy, which calls for focusing resources in the areas where we feel we can unlock the greatest potential for growth and value creation. We believe that Kohlberg & Company, LLC, a leading private equity firm with expertise in the consumer products sector, is the right owner for our Winter Sports businesses, and is well positioned to unlock their full potential and value. We are confident these brands will continue to succeed under their new ownership.”
Find the entire MarketWatch article here: Newell Brands sells winter sports business to private equity firm Kohlberg & Company