Newell Brands’ winter sports group sale this past weekend included K2 and Ride Snowboards. The company announced late last week that a deal was in place to sell the businesses. Kohlberg & Company will officially take over as owners after finalizing the $240 million deal.
This massive sale comes just a year and a half after the two brands were originally bought by Newell. The company hopes unloading K2 and Ride will help simplify its portfolio going forward. The deal is a win-win for both brands as well as Kohlberg & Company. With Kohlberg’s financial backing, both snowboard companies could generate more marketing and advertising revenue, further strengthening the brands.
Even though the sale may be viewed as a bad thing for some snowboarding enthusiasts, K2 and Ride are certainly here to stay. Both companies have a strong presence and fan base evidenced by nearly 200,000 followers on the social media site Facebook. Ride has been supplying gear to the public for a quarter-century, while K2 has thrived for an even longer period of time.
Founded in Seattle in the late 1980’s, K2 Snowboards have been a staple in the sports industry. Just years after its inception, K2 became one of the top snowboard manufacturers in the United States. The company currently sponsors big-name boarders such as Gretchen Bleiler, Eero Niemela, and Shaun McKay. And, big-name sponsorship deals may continue to grow courtesy of K2’s new owners.
Kohlberg & Company is a private equity firm that recently celebrated its 30th year in business. The firm sets its sights on mid-level companies that struggle financially and/or structurally. Headquartered in New York, Kohlberg & Company aim to buy a diverse range of brands, making K2 and Ride ideal investments. The firm already owns Bauer, a popular name among hockey players therefore; this is not the company’s first venture into snow sports.
In addition to acquiring K2 and Ride, Kohlberg & Company also purchased Volkl, Dalbello, Atlas, and Full Tilt brands as part of the sale.