K2 INC. MAKES A PITCH FOR RAWLINGS.

Byline: Brent Hopkins Staff Writer

Ski equipment maker K2 Inc. announced Wednesday a bid for Rawlings Sporting Goods Co. Inc., the storied company behind professional baseballs, hockey pucks and college-team equipment.

Neither side would disclose details of the dealings, but industry experts said a purchase by Los Angeles-based K2 would make good sense for both parties. Known primarily for its outdoor products - it's a leader in skis, snowboards, fishing poles and in-line skates - K2 wants to broaden its portfolio. With a brand name that runs back to 1886 and a name synonymous with the national pastime, Rawlings looks like an attractive target.

``It's a great American brand,'' said Dick Heckmann, K2's chairman and chief executive officer. ``Every kid who's ever played baseball knows the Rawlings name.''

That name, affixed to Major League Baseball's game balls and prestigious Gold Glove award, would quickly give outdoors leader K2 a major presence in the sports world. Though Rawlings earned only $1.8 million last year on sales of $174.5 million, K2 covets its brand history and industry prestige.

``Rawlings is very clearly in the athletic market as opposed to the outdoors market,'' said Thomas B. Doyle, vice president of information and research for the National Sporting Goods Association. ``It's one of the strong, old brand names, up there with Wilson and Spaulding. K2 is a much-broader corporation with many subdivisions and most of their current offerings are more outdoors-oriented.''

K2 has competition for the company: Rawlings' main shareholder, Daniel Gilbert. As 15 percent owner of the Fenton, Mo.-based firm, the chairman of online mortgage broker Quicken Loans has sought to shake up management by exercising his voting power. Last week, he offered the company an all-stock purchase at $8 a share, in the $65 million range, and said the deal could be further sweetened. His spokeswoman, Elizabeth Jones, declined to comment on K2's offer Wednesday.

If K2 can win over Rawlings management, who did not return calls seeking comment, analyst Paul Resnik thinks the purchase could help both firms.

``From the standpoint of Rawlings, K2 would flatten out some of their seasonality,'' said Resnik, who follows Rawlings' stock for the independent research firm J.M. Dutton. ``They're summer sports, while K2 has a lot of winter sports. Rawlings also believes that K2 brings some supply-chain infrastructure improvement. Their manufacturers in Asia would be useful, as well.''

He noted that Heckmann's management style lends itself well to the sporting goods business. The industry needs more consolidated management, Resnik said, and Heckmann's expertise lies in acquisition. Prior to joining K2 several years ago, he built water-treatment firm US Filter into a major player, all through snapping up smaller firms.

``I don't know if you'd say we were acquisitive,'' Heckmann joked. ``We only had 260 of them and grew from two people to 30,000. I truly understand corporate integration.''

Heckmann said folding the 2,000-employee Rawlings into the 10,000-strong K2 would allow synergy in dealing with customers and brushing up for Wall Street. Resnik agreed, noting that neither firm has much presence in the financial community, garnering little coverage or trade activity. On the news of K2's interest, Rawlings stock inched up 19 cents to close at $8.24, while K2's fell 11 cents to $10.25.

If he does lay his hands on Rawlings, however, Heckmann pledged not to tamper with its storied name.

``I would never mess with the brand,'' he said. ``We're No. 1 in fishing, skis, in-line skates and inflatable vests. We're a company of power brands, and Rawlings would be a power brand for us. We think it fits with everything else we do.''