Yakima Sport Racks Sold to Kayak Company for $91 Million

Business Wire, August 23, 2001

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 23, 2001

Yakima Products Inc. Chairman John Bowes today announced that Yakima, the nation's leading manufacturer of multi-sport car racks and accessories, was sold for $91 million in cash to America's leading paddle sports company, Watermark Paddlesports, Inc. J.P. Morgan represented Yakima in the sale.

Yakima, founded in 1979, is headquartered in Arcata, Calif. The company's name graces hundreds of thousands of car rooftops on its racks, accessories, and trailers for bikes, kayaks, and other sporting equipment. Yakima has 130 employees in Arcata and another 350 employees at its manufacturing plant in Tijuana, Mexico.

"I purchased Yakima in 1994 because I knew the value of the brand and the great quality of car racks that the company manufactured," Bowes said. "The sale of the company to Watermark is a great fit for both companies. It marries the best manufacturer of kayaks with the best producer of kayak racks in the world."

Bowes, a highly respected investor and native San Franciscan, was a founder of Kransco, whose brands included Power Wheels, Morey Boogie, Wham-O, Frisbee, and others. He sold this company to Mattel in 1994.

Watermark, based in South Carolina, is the world's leading paddle sports company. It manufactures the Perception, Dagger, Islander, Mainstream and Harmony lines. Watermark is owned by Crescent Capital Investments, Inc. of Atlanta. Crescent is actively acquiring companies with strong management teams and excellent growth opportunities.

"Watermark is delighted to announce that Yakima will join our group of premium brands," said John Rukavina, Watermark's CEO. "Yakima is one of the strongest brands in specialty outdoor sports, posting three straight years of double digit growth. During that time, Watermark has firmly established its leadership position in the kayak industry. The strengths of our respective R&D departments, management teams and East/West Coast logistics will present exciting new growth opportunities for our specialty dealers."