Small appliance and consumer goods company Jarden is buying K2, the maker of K2 skis and Rawlings baseballs, for $765 million in a move to expand its outdoor products line.

The camping gear company will pay $15.50 for each K2 share, a significant premium to the company's recent stock price.

The deal indicates that Jarden has a continuing interest in acquiring outdoor products. Earlier this month, Jarden acquired Pure Fishing, a fishing tackle company, to add to its outdoor products portfolio. The deal is expected to boost the company's earnings and lead to cost savings of $25 million to $50 million over the next two years. The acquisition is expected to close early in the third quarter.

Jarden, which markets brands like Mr. Coffee, Sunbeam, Crock-Pot and Coleman, expects to reach earnings of $2.98 per share by the end of 2007 and aims to earn more than $5 per share in the next three to four years.

Small appliance and consumer goods maker Jarden Corp. said on Wednesday it will buy K2 Inc., which makes K2 skis and Rawlings baseballs, for $765 million to expand its outdoor products line.

Jarden, whose products range from playing cards and plastic cutlery to camping gear and coffee makers, will pay $15.50 in cash and stock for each K2 share, which represents a 23 percent premium to K2's closing price on Tuesday.

(Continue reading this story on Reuters)

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