Newell Brands Inc. said Friday it reached a definitive agreement to sell its Winter Sports businesses, formerly part of Jarden Group, to Kohlberg & Company, the private equity firm, for $240 million.

Brands being sold include Völkl, K2, Marker, Dalbello, Madshus, Line, Full Tilt, Atlas, Tubbs, Ride and BCA. Net sales for the divested businesses were approximately $330 million during 2016 and annual adjusted EBITDA for the divested businesses is approximately $25 million.

Last October, Newell said that as the result of a strategic review of its portfolio, the company planned to sell about 10 percent of its portfolio, including Jarden Outdoor’s Winter Sports businesses. Newell Brands completed the acquisition of Jarden Group in April 2016.

A Newell spokesperson told SGB that the divesture is part of Newell Brands’ ongoing strategy to accelerate growth by simplifying and strengthening its portfolio while focusing on brands with “the greatest potential for growth and value creation.”

Newell earlier this year reclassified the Jarden Outdoor segment into the Play segment and continues to own the majority of the segment’s brands. They include Coleman, Campingaz, Marmot, Contigo and Bubba in the Outdoor & Recreation category; Abu Garcia, Berkley, Shakespeare, Penn and Ugly Stik in the Fish category; and Rawlings in the Team Sports category. Overall sales of the Jarden Outdoor segment were $2.42 billion in 2016.

Kohlberg & is a leading private equity firm specializing in middle-market investing. Since its inception in 1987, Kohlberg has organized eight private equity funds, through which it has raised $7.5 billion of committed equity capital. Over its 30-year history, Kohlberg has completed 70 platform investments and more than 150 add-on acquisitions, with an aggregate transaction value in excess of $10 billion.

Said the Newell spokesperson, “We believe that Kohlberg & Company, LLC, a leading private equity firm with expertise in the consumer products sector, is the right owner for our Winter Sports businesses, and is well positioned to unlock their full potential and value. We are confident these brands will continue to succeed under their new ownership.”

Newell also noted that Zoot and Squadra, which were also part of the review announced last October, were sold in a separate transaction to Zoot Squad Inc., a California corporation founded by certain members of the current management team. Terms were not disclosed.

Zoot Squad includes General Manager Shawn O’Shea and founder and original owner of Squadra, Dan Weatherford. Zoot is a triathlon running shoe brand while Squadra makes custom cycling and triathlon apparel.

Said the Newell spokesperson, “We are confident that Zoot Squad, Inc. is the right owner for these brands and is best positioned to unlock their full potential and value. We know these brands will continue to succeed under their ownership.”

The Kohlberg & Company deal is expected to close late in the second quarter or early in the third quarter, subject to customary closing conditions, including regulatory approval.

Goldman Sachs & Co. LLC acted as financial advisor to Newell on the transaction.

Photo courtesy K2