Brass Eagle Inc merges with K2 Inc.....

[Kevmaster]

BEOG.org Post (http://beog.org/forums/ikonboard.cgi?;act=ST;f=1;t=484;st=0;&)

Theres your info....BE HAS MERGED with K2 inc....

[BajaBoy]

hmmm i dont know what it all mean but when i skated... (1-2 years back) k2 skates were Good, hope that doesnt change

[Kevmaster]

BE is being bought by K2....K2 is a billion dollar comapny...BE is merely a 100m company. K2 has a 'hands off approach' to their comapnies...basically...all it means is BE gets deper wallets and more distribuiton outlets (current skating/sking/fishing/etc stores)

[GT]

Brass Eagle also reported that net sales for the third quarter increased 12.3% to $24.6 million versus $21.9 million for the same period last year.

:eek: :eek: :eek:

[elpimpo]

Originally posted by Kevmaster
BE is merely a 100m company. )

merely 100 mill

[FreakBaller12]

that's all, i make that in a week psh some company;)

[DiRTyBuNNy]

so how long till K2 starts their own version of X-Ball...but on skis..

[RT pRo AuToMaG]

Originally posted by DiRTyBuNNy
so how long till K2 starts their own version of X-Ball...but on skis..

lol

[DiRTyBuNNy]

I never realised they were in Carlsbad, CA....guess all good things are in Cali...JT, Dye, K2, Calloway, Keely Watson, Autocockers..oops..how did the last one get in there..

[edweird]

Good ... hopefully K2 will impose some quality in there new partner...

[PyRo]

Ive actually thought about playing paintball while snowboarding. It could prove rather interesting.

[Spartan X]

K2 really does make some quality stuff. I own a K2 Oz-M Mountain bike. This babies frame is made completely of thermoplastic carbon fiber, with all XTR parts, and well has hydrogen charged electronic controled dampening shocks. Thats right my bike costed more then my X-mag did. This bike went new for just over $4,000 in 1999. Yes that's right 4 grand. This thing can reallt take punishment, it's a bummer there not made any more.

[DiRTyBuNNy]

woot woot! Go BE...

[Kevmaster]

Oh...and on a side note...i cant wait for SP to try and claim rights to the electro marker and sue BE/JT (for the JT 5.0, 6.0, Rainmaker, and other VL markers) patent infringement....SP can knock around little ICDs all day long...try the billion dollar BE....

[dansim]

the BILLION dollar BE, now im scerrred, no seriously:o

[DiRTyBuNNy]

just for clarifications sake..I don't know of many billion dollar companies that merge with a hundred million dollar company...they call that an acquisition...K2 didn't merge with BE...they acquired them in a stock swap...

[AGD]

Hummm really interesting development, I am curious to see what happens next.

AGD

[deathstalker]

The deal still needs to be approved by the shareholders (the owners of the company). It's possible, albeit unlikely, that they will reject the offer.

[DiRTyBuNNy]

it looks like SP may be in for good ol' butt whoopin if they think they are going to take on a billion dollar company and not come out with a bloody nose..

[CrashMaster]

Never thought of that but mabey Sp will try to step in the ring with K2 and get knocked out, I like that idea :) But hopefully K2 will do some re-arrangement in the way BE is run and start putting out some quailty gear. My friend had a pair of K2 skates and he loved them so hopefully that is the way BE will go.

[jwren00]

brass eagle had a $187 million market cap in 99, thats crazy. I had no idea it was that big

[lord1234]

k2 skis rock...i have a old pair of k2s that i still love..but i race on my brand new Atomic skis...

[Kevmaster]

They're using the word merger...so...I used it. And you're right...the current BE share holders COULD reject it, however, there is one independent holding comapny that holds about 50% of all BE stock--and they are in favor of it...so its 99.9% done deal.

K2 is very hands off...expect BE to run the same way they are now just with lower prices (cheaper manufacturing), more outlets (all existing K2 dealers) and more financial backing

[GT]

any bets that SP wont be knocking on BEs door?

[beam]

Called it.

http://www.automags.org/forums/showthread.php?s=&postid=987043#post987043

[E-mag-uy]

Originally posted by PyRo
Ive actually thought about playing paintball while snowboarding. It could prove rather interesting.

If u like falling down and having ur tank explode and having shards of metal or carbon fiber enter lungs and kill you... I like it, wen and wer

[DK1]

Originally posted by DiRTyBuNNy
just for clarifications sake..I don't know of many billion dollar companies that merge with a hundred million dollar company...they call that an acquisition...K2 didn't merge with BE...they acquired them in a stock swap...

actually, things like that happen. Aquisitions and mergers are hand in hand, but if they are saying merger, it's a merger. BE most likely will keep it's top execs, and in these situations, that doesn't always happen.

Look at Nations Bank. They did a merger with Bank of America. BoA lost it's top execs. It's now run by the execs and controllers of Nations, yet it's still called BoA. Turns out, Nations had tons of cash, but they weren't ready for Y2K. So they went out and got themselves a computer system... Bank of America's system.

So, this may seem to be an aquisition at first glance, and K2 may end up holding all the strings, but more likely it'll just end up with more money in all the pockets invovled, which is the point.

DK1

[Marek]

So lower prices and a chance to knock SP like a pinata. Sounds good to me.

[Twon]

K2 Snowboards are getting better, K2 skates are good, K2 Bikes are very expensive and K2 skis are junk. Made in china (wtf chinese know about skis anyways) they are not even no.1 in USA, Rossignol is. I've been in the the ski industry for 5 years are K2 have the worst customer service EVER. I worked for them last year and it took them a freakin month for my personnal order to arrive.

Twon

[SpongeBobSquarePants]

I never thought I would see that day BE was actually bought out. But it should be good for them.:)

[Spartan X]

I'll try and get a Pic of my bike. It's just so pretty. I can use windex to clean it :)

[Jack & Coke]

fyi: another article...

http://www.pbstar.com/pn/modules.php?op=modload&name=PagEd&file=index&page_id=71




HOT! Brass Eagle Puchased By K2

We just heard from a reliable source at the World Cup that Brass Eagle was just purchased by billion dollar ski company K2.

According to our source, K2 will be taking Brass Eagle and paintball to the next level as they advertise in mediums most paintball companies could never dream of.

K2 Inc. (NYSE: KTO) and Brass Eagle Inc. (NASDAQ NM: XTRM) jointly announced the signing of a definitive merger agreement in which Brass Eagle would become a wholly-owned subsidiary of K2. In the transaction, each outstanding share of Brass Eagle common stock will be exchanged for 0.6036 shares of K2 common stock. Based on the average closing price of K2 shares of $16.85 for the 30 trading days ending October 20, 2003, the value of the transaction is $77.8 million, or $10.17 per share for Brass Eagle shareholders, plus assumed liabilities. The transaction, which is subject to regulatory review and other customary conditions, is expected to be completed by the end of 2003. K2 indicated that it expects the transaction to be accretive to its earnings in the first 12 months following completion of the merger and beyond.
"Brass Eagle is the #1 brand and the premier platform for our entry into the rapidly growing paintball sector," said Richard J. Heckmann, K2's chairman and chief executive officer. "Brass Eagle has been the long-term leader in an industry that has had growth in participation at an annual rate in excess of 10% over the past three years, and is now estimated to have 8.7 million participants who generated over $370 million in annual wholesale sales in 2002. In addition to being a profitable business on its own merits, Brass Eagle will complement K2's existing product lines in extreme sports and protective face gear, will further leverage our common distribution channels, and will strengthen our third and fourth quarters which are seasonally slow for most of K2's other product categories."

"This merger provides Brass Eagle stockholders and employees with significant opportunities for future growth and success," said E. Lynn Scott, Brass Eagle's president and chief executive officer. "Brass Eagle will benefit from K2's strong partnership with retailers, its significant expertise in manufacturing and its commitment to supporting and growing its portfolio of leading brands."

Approximately 50% of Brass Eagle's outstanding common stock is owned by Charter Oak Partners, a private investment partnership. "We are delighted to provide our support for a merger with K2," said Anthony Dowd, the Director of Private Investments of Charter Oak Partners. "Lynn Scott and his management team should be commended for their performance in building Brass Eagle into the clear industry leader, and the shareholders now have an opportunity to benefit from a larger playing field through a combination with K2."

Under the terms of the merger agreement, K2 will first commence an exchange offer in which tendering Brass Eagle stockholders will receive 0.6036 of a share of K2 common stock for each share of Brass Eagle common stock tendered in the offer. The exchange offer, if completed, will be followed by a back-end merger for the same consideration as offered in the exchange offer. The Board of Directors of Brass Eagle has approved and adopted the merger agreement and has resolved to recommend that Brass Eagle stockholders accept the offer and tender their Brass Eagle stock in the offer.

The transaction is expected to qualify as a "tax-free" reorganization for federal income tax purposes. Consummation of the transaction is subject to the condition that there be validly tendered, and not withdrawn, at least a majority of the shares of Brass Eagle's outstanding common stock and certain shares subject to options, receipt of certain regulatory approvals and other customary conditions and termination provisions. In addition, Brass Eagle will have the ability to terminate the agreement if the average closing price for K2's shares for any ten trading days ending not later than two trading days prior to the expiration of the offer is less than $12.64. In connection with the merger agreement, Charter Oak Partners, the majority stockholder of Brass Eagle, has separately agreed with K2 that it will tender its shares of Brass Eagle in the offer unless the merger agreement is terminated under certain circumstances.