K2 Inc., the maker of Rawlings sporting goods and Shakespeare fishing equipment, agreed to buy Fotoball USA Inc. for $17.2 million in stock, to add sports souvenirs such as bobble-head dolls, balls and bats.
The transaction values each Fotoball share at $4.37, or 9.8% more than Tuesday's closing price of $3.98. K2 also will acquire $704,000 in Fotoball debt, bringing the total purchase price to $17.9 million, Fotoball Chief Financial Officer Thomas Hillebrandt said.
Fotoball, based in San Diego, has licenses with the four major U.S. sports leagues and more than 100 colleges to make memorabilia with team logos.
Carlsbad, Calif.-based K2 said Fotoball's products would complement its Rawlings line of baseball equipment. K2 has made five acquisitions this year, including paintball accessories and Rawlings, to expand outside of skiing equipment.
K2 fell 43 cents to $15.27 on the NYSE, while Fotoball rose 17 cents to $4.15 on Nasdaq.
