CARLSBAD -- Sports equipment maker K2 Inc. announced today it is being purchased for $1.2 billion in stock, cash and assumed debt. The buyer is Jarden Corp., of Rye, NY.

Jarden will pay $10.85 per share of K2 common stock in cash, and issue 0.1086 share of Jarden common stock for each share of K2 common stock as of the deal's close. The price can be adjusted under the agreement before it closes.

Shares of K2 were up nearly 20 percent in late morning (EDT) trading, at $15.08 per share, giving the company a total stock value of $745 million.

K2 brands include Rawlings, the official baseball of Major and Minor League Baseball; K2 skis, snowboards and apparel; Shakespeare fishing tackle and Brass Eagle paintball equipment.

The deal is expected to close in the third quarter of this year. The boards of both companies have unanimously approved the deal, which is subject to shareholder and various regulatory approvals.