The latest deal to snag Worth Inc., which expands the K2 stable to 16 brands, is a strong complement to the April purchase of Rawlings. Worth should benefit quickly from K2’s manufacturing capabilities, while K2 benefits from Worth’s bat-making prowess.

Worth manufactures bats, a capability Rawlings lacks.
K2 Inc. CEO Dick Heckman said the deal for Worth makes K2 the “market leader in balls, bats and gloves”, while Worth's lacrosse division, deBeer, gives them “fast access to a fast growing team sport”.

The purchase price, which was not disclosed, is expected to be a combination of K2 common stock and cash, plus the assumption of debt. Worth generated sales of $57.8 million in the year ended June 30, 2002. The latest deal is expected to be accretive to earnings in the first twelve months.

KTO closed at $17.40 Friday, up 8.3% for the week.


>>> Worth and Rawlings have given K2 a solid toe-hold in the Baseball/Softball and Lacrosse market. We just have to wonder “what’s next?”