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Jarden Buying K2 For $1.2 Billion, Posts Lower Profit On Charges

Reuters
Wednesday, 25 Apr 2007 | 2:39 PM ET

Small appliances and consumer goods company Jarden said on Wednesday it would buy sports equipment maker K2 for $15.50 per K2 share in cash and stock.

It said including debt assumption, the total enterprise value of the deal would be about $1.2 billion.

K2 Deal
Consumer goods company Jarden is buying sports equipment maker K2 for $15.50/share, with Martin Franklin, Jarden chairman & CEO

Jarden also said that quarterly net income fell on one-time items, including reorganization and acquisition-related costs and a tax provision adjustment.

The company, which markets a variety of brands including Mr. Coffee, Sunbeam and newly acquired Pure Fishing, said net income for the first quarter ended March 31 was $1.4 million or 2 cents a share, compared with $5.7 million or 9 cents a share in the year-ago quarter.

On an adjusted basis, the company earned $21.4 million or 30 cents a share. Adjustments to net income consist of $9.1 million in reorganization and acquisition-related costs, $6.8 million in stock-based compensation expense, and other tax provision adjustments and charges related to paying off debt, Jarden said.

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