Brass Eagle paintball announces merger agreement with K2

Brass Eagle Inc. the worldwide leader in the manufacturing, marketing and distribution of paintball products today announced a Merger Agreement with K2 Inc. and reported results for the third quarter ending September 30, 2003.

Brass Eagle entered into an Agreement today to merge the Company with K2 Inc. of Carlsbad, California in an all stock transaction. The Agreement contemplates an exchange offer of K2 common shares for common shares of Brass Eagle followed by a merger. Brass Eagle Shareholders will receive 0.6036 shares of K2 common stock for each share of Brass Eagle common stock. The Board of Directors of Brass Eagle recommends that shareholders accept the offer, and tender their shares to K2. The merger may be finalized as soon as December, 2003.

Lynn Scott, Brass Eagle President and CEO, stated “We are very enthused about the future, and believe that the merger with K2 presents significant opportunities for the Company. K2’s resources in marketing and brand building, manufacturing, and product development will help Brass Eagle achieve the long term goal of becoming a diversified action sports company, while remaining the number one supplier of paintball products to the market place.”

Brass Eagle also reported that net sales for the third quarter increased 12.3 percent to $24.6 million versus $21.9 million for the same period last year. Net income for the three months ended Sept. 30, 2003 was $1.3 million compared to $1.5 million for the corresponding period in 2002. Earnings per diluted share were $0.18 compared to $0.21 in 2002.

For the first nine months of the year, net sales decreased 8.7 percent to $62.7 million from $68.7 million for the same period in 2002. Net income for the first nine months of the year was $1.7 million compared to $5 million last year. Diluted earnings per share decreased 65.7 percent this year to $0.23 from $0.67 for the first nine months of 2002.

Brass Eagle is unique in providing a full line of paintball markers and accessory products from beginner through competition level. The Company is the dominant supplier of products for this rapidly growing sport.

About The Author:

Adam Boyd is a successful author and regular contributor to http://www.paintball-guns-n-equipment.com. Find all the paintball gear, masks, jerseys, guns, pistols, protection, paint supplies, accessories and more.