In the biggest ski industry news in recent memory, international consumer goods company Newell Brands, Inc. announced yesterday that it will attempt to sell off all of its holdings in the winter-sports business by January 1, 2017 — including iconic brands like K2, Marker, Full Tilt, Völkl and Line.
Companies that aren’t sold by this date could potentially face shutdown, said Newell Brands CEO Michael Polk.
Some of them are the kinds of businesses that would be difficult to sell and therefore, we should just shut down because they create no value for you and they are a distraction for us.- Michael Polk, Newell Brands CEO
Newell acquired Jarden Corporation — the owner of K2, Marker, Marmot, Völkl and numerous other companies — earlier this year. A massive international holding conglomerate, Newell is now looking to “transform from a holding company to an operating company” and sell off about 10 percent of its holdings in the process — including its entire winter sports portfolio.
That includes a wide array of companies underneath the Newell and K2 Sports umbrellas — including K2, Marker, Marmot, Full Tilt, Völkl, Line, Ride Snowboards, Backcountry Access, Morrow, 5150, Madhus and more.
Rumors began flying about potential issues at K2 when the company released one of its most recognized brand ambassadors, Seth Morrison, last month. Now those rumors have been confirmed — and then some.
Newell says the for-sale holdings account for about $1.5 billion in revenue per year — meaning they could be attractive acquisitions for other corporations looking for a piece of the winter-sports market. However, companies that don’t find a buyer in the allotted three months’ time could face a shutdown.
“Ideally I would like to sell these assets versus simply walk away from them,” Polk said at a recent business conference. “Some of them are the kinds of businesses that would be difficult to sell and therefore, we should just shut down because they create no value for you and they are a distraction for us.”