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K2 Purchases Snowshoe Maker

October 21, 2003|From Bloomberg News

Sporting goods maker K2 Inc. said Monday that it bought closely held WinterQuest for an undisclosed amount of cash, K2 common stock and debt.

The transaction was the Carlsbad, Calif.-based company's fifth acquisition this year.

WinterQuest, which produces snowshoes under the Tubbs and Atlas brands, had sales of $18.6 million in the fiscal year ended March 31, K2 said.

K2 has bought several sporting-goods companies this year as part of its plan to expand and diversify its product lines. The company last month bought Worth Inc., a maker of softball and baseball equipment, and Rawlings Sporting Goods Co. in March. Rawlings supplies baseballs to Major League Baseball.

WinterQuest's snowshoes would complement the company's winter products group, Chief Executive Richard Heckmann said. K2 has long been a maker of skis and snowboards.

K2 expects the acquisition to increase earnings in the fourth quarter, which typically has been a weak period for the company, Senior Vice President Dudley Mendenhall said. He declined to give the transaction's value.

"It fits very well with our distribution channels and from a manufacturing standpoint, there's a lot of synergies," Mendenhall said.

Shares of K2 rose 4 cents to $17.50 on the New York Stock Exchange. The shares have more than doubled in the last year.

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