LOS ANGELES (Dec. 18)—Outdoor sports equipment maker K2 Inc. has made a stock-swap offer, valued at $84 million, to take over baseball and basketball maker Rawlings Sporting Goods Co. Inc., but Rawlings' largest shareholder has vowed to oppose the offer. Los Angeles-based K2 is offering Rawlings shareholders 0.95 of a K2 share for every Rawlings share they own. The transaction, subject to shareholder approval by both companies, regulatory review and other customary conditions, is expected to be completed in the spring of 2003, K2 said. "Rawlings provides a premier platform for our entry into the $1.3 billion team sports equipment business," said Richard Heckmann, K2 chairman and CEO. "We believe a merged K2 and Rawlings will beàthe leader in baseball, fishing equipment, personal flotation devices, in-line skates and skis in the U.S. market, and No. 2 in snowboards." Rawlings had sales of $173.7 million and earnings of $3.3 million for the fiscal year ended Aug. 31. Businessman Daniel Gilbert, who holds nearly 15 percent of Rawlings shares and who floated his own offer a few weeks earlier, was quoted as saying K2's offer had "tons of inherent risks" for Rawlings´ shareholders.
K2 makes $84 million stock-swap offer for Rawlings Sporting Goods
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