K2 Inc. to Sell Simplex Building Products Division

04 July 2000

K2 Inc. announced an agreement to sell its Simplex building products division to Ludlow Building Products Inc. for $27.5 million in cash. "The Simplex sale further emphasizes K2's commitment to enhancing shareholder value by focusing our company's resources on growing our sporting goods franchise," said Richard M. Rodstein, president and chief executive officer. "While Simplex has been a consistent contributor for many years, this divestiture will allow us to re-deploy assets to grow our core sporting goods business through internal means and by acquisition." On an immediate basis, K2 plans to use the proceeds from the sale to reduce debt. K2 Inc. is a leading designer, manufacturer and marketer of brand name sporting goods, recreational and industrial products. The company's sporting goods and recreational products include well-known names such as K2 and Olin alpine skis; K2, Ride and Morrow snowboards, boots and bindings; K2 in-line skates; Stearns sports equipment; Shakespeare fishing tackle; K2 bikes; and Dana Design backpacks. K2's other recreational products include Planet Earth apparel, Adio skateboard shoes and Hilton corporate casuals. K2's industrial products include Shakespeare extruded monofilaments, marine antennas and fiberglass light poles.

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