Newell Brands Inc. announced that it has signed a definitive agreement to sell its Winter Sports businesses, inclusive of Völkl, K2, Marker, Dalbello, Madshus, Line, Full Tilt, Atlas, Tubbs, Ride and BCA, to Kohlberg & Company, L.L.C., a private equity firm specializing in middle-market investing.
The sale of the Winter Sports businesses is part of Newell Brands ongoing strategy to accelerate growth by simplifying and strengthening its portfolio.
Gross proceeds from the divestiture are expected to be $240 million, subject to customary working capital and transaction adjustments. Net sales for the divested businesses were approximately $330 million during 2016 and annual adjusted EBITDA for the divested businesses is approximately $25 million. The transaction is expected to close late in the second quarter or early in the third quarter of 2017, subject to customary closing conditions, including regulatory approval. Goldman Sachs & Co. LLC acted as financial advisor to Newell Brands on the transaction.
Additionally, Newell Brands has signed a definitive agreement to sell its Zoot & Squadra apparel brands in a separate transaction although details on the buyer were not disclosed.
Last October, Newell Brands said that as the result of a recently completed strategic review of its portfolio, the company planned to sell about 10 percent of its portfolio, including Jarden Outdoor’s Winter Sports businesses as well as Zoot, the triathlon running shoe brand, and Squadra, the designer and manufacturer of custom cycling and triathlon apparel.
Photo courtesy Völkl
