K2 Inc. has closed its previously announced acquisition of Marmot Mountain Ltd., which was valued at approximately $84 million plus the assumption of debt estimated to be in the $20 million to $24 million range.
A secondary stock offering of 6.4 million shares, which had been increased due to strong demand, also closed last week, netting the company approximately $94.0 million. The sale to a group of underwriters led by J.P Morgan Securities was originally expected to bring in $75.0 million.
K2 also put another $194.5 million in its bank after issuing $200.0 million in 7 3/8% senior notes that will come due in 2014. The proceeds were put into an escrow account pending the closure of the Volkl and Marker acquisitions, which are expected in mid-July.
And lastly, K2 has executed an amended and restated credit facility led by J.P. Morgan Chase Bank providing for a $250.0 million revolver, with an option to expand the facility to $350.0 million subject to certain conditions.
>>> Looks like someones building a war chest to keep the momentum going…
