Jarden Corporation and K2 Incorporated; Analysis of Agreement Containing Consent Orders to Aid Public Comment, 45815-45817 [E7-16060]

Download as PDF Federal Register / Vol. 72, No. 157 / Wednesday, August 15, 2007 / Notices FEDERAL TRADE COMMISSION Notice of Proposals to Engage in Permissible Nonbanking Activities or to Acquire Companies that are Engaged in Permissible Nonbanking Activities [File No. 071 0168] The companies listed in this notice have given notice under section 4 of the Bank Holding Company Act (12 U.S.C. 1843) (BHC Act) and Regulation Y (12 CFR Part 225) to engage de novo, or to acquire or control voting securities or assets of a company, including the companies listed below, that engages either directly or through a subsidiary or other company, in a nonbanking activity that is listed in § 225.28 of Regulation Y (12 CFR 225.28) or that the Board has determined by Order to be closely related to banking and permissible for bank holding companies. Unless otherwise noted, these activities will be conducted throughout the United States. Each notice is available for inspection at the Federal Reserve Bank indicated. The notice also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing on the question whether the proposal complies with the standards of section 4 of the BHC Act. Additional information on all bank holding companies may be obtained from the National Information Center Web site at www.ffiec.gov/nic/. Unless otherwise noted, comments regarding the applications must be received at the Reserve Bank indicated or the offices of the Board of Governors not later than August 30, 2007. A. Federal Reserve Bank of San Francisco (Tracy Basinger, Director, Regional and Community Bank Group) 101 Market Street, San Francisco, California 94105-1579: 1. Capital Corp of the West, Merced, California; to acquire Bay View Funding, San Mateo, California, and thereby engage in factoring and accounts receivable, pursuant to section, 225.28(b)(1) and (b)(2)(vi) of Regulation Y. ebenthall on PROD1PC69 with NOTICES FEDERAL RESERVE SYSTEM AGENCY: Board of Governors of the Federal Reserve System, August 10, 2007. Jennifer J. Johnson, Secretary of the Board. [FR Doc. E7–15999 Filed 8–14–07; 8:45 am] BILLING CODE 6210–01–S VerDate Aug<31>2005 15:00 Aug 14, 2007 Jkt 211001 Jarden Corporation and K2 Incorporated; Analysis of Agreement Containing Consent Orders to Aid Public Comment ACTION: Federal Trade Commission. Proposed Consent Agreement. SUMMARY: The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices or unfair methods of competition. The attached Analysis to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order—embodied in the consent agreement—that would settle these allegations. DATES: Comments must be received on or before September 7, 2007. ADDRESSES: Interested parties are invited to submit written comments. Comments should refer to ‘‘Jarden/K2, File No. 071 0168,’’ to facilitate the organization of comments. A comment filed in paper form should include this reference both in the text and on the envelope, and should be mailed or delivered to the following address: Federal Trade Commission/Office of the Secretary, Room 135-H, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580. Comments containing confidential material must be filed in paper form, must be clearly labeled ‘‘Confidential,’’ and must comply with Commission Rule 4.9(c). 16 CFR 4.9(c) (2005).1 The FTC is requesting that any comment filed in paper form be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. Comments that do not contain any nonpublic information may instead be filed in electronic form as part of or as an attachment to e-mail messages directed to the following email box: consentagreement@ftc.gov. The FTC Act and other laws the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. All timely and responsive public comments, whether filed in paper or electronic form, will be 1 The comment must be accompanied by an explicit request for confidential treatment, including the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. The request will be granted or denied by the Commission’s General Counsel, consistent with applicable law and the public interest. See Commission Rule 4.9(c), 16 CFR 4.9(c). PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 45815 considered by the Commission, and will be available to the public on the FTC website, to the extent practicable, at www.ftc.gov. As a matter of discretion, the FTC makes every effort to remove home contact information for individuals from the public comments it receives before placing those comments on the FTC website. More information, including routine uses permitted by the Privacy Act, may be found in the FTC’s privacy policy, at http://www.ftc.gov/ ftc/privacy.htm. FOR FURTHER INFORMATION CONTACT: Brendan J. McNamara (202) 326-3703, Bureau of Competition, Room NJ–5108, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580. SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and § 2.34 of the Commission Rules of Practice, 16 CFR 2.34, notice is hereby given that the above-captioned consent agreement containing a consent order to cease and desist, having been filed with and accepted, subject to final approval, by the Commission, has been placed on the public record for a period of thirty (30) days. The following Analysis to Aid Public Comment describes the terms of the consent agreement, and the allegations in the complaint. An electronic copy of the full text of the consent agreement package can be obtained from the FTC Home Page (for August 9, 2007), on the World Wide Web, at http://www.ftc.gov/ os/2007/08/index.htm. A paper copy can be obtained from the FTC Public Reference Room, Room 130-H, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580, either in person or by calling (202) 326-2222. Public comments are invited, and may be filed with the Commission in either paper or electronic form. All comments should be filed as prescribed in the ADDRESSES section above, and must be received on or before the date specified in the DATES section. Analysis of Agreement Containing Consent Order to Aid Public Comment I. Introduction The Federal Trade Commission (‘‘Commission’’) has accepted, subject to final approval, an Agreement Containing Consent Orders (‘‘Consent Agreement’’) from Jarden Corporation (‘‘Jarden’’) and K2 Incorporated (‘‘K2’’). The purpose of the proposed Consent Agreement is to remedy the anticompetitive effects that would otherwise be likely to result from Jarden’s acquisition of K2. Under the terms of the proposed Consent Agreement, Jarden and K2 are required E:\FR\FM\15AUN1.SGM 15AUN1 45816 Federal Register / Vol. 72, No. 157 / Wednesday, August 15, 2007 / Notices to divest assets related to K2’s Cajun Line, Omniflex, Outcast, and SupremeTM monofilament fishing line products. The proposed Consent Agreement has been placed on the public record for thirty days to solicit comments from interested persons. Comments received during this period will become part of the public record. After thirty days, the Commission will again review the proposed Consent Agreement and the comments received, and will decide whether it should withdraw from the proposed Consent Agreement or make it final. Pursuant to an Agreement and Plan of Merger dated April 24, 2007, Jarden proposes to acquire K2 in a transaction valued at approximately $1.2 billion (‘‘Proposed Acquisition’’). The Commission’s complaint alleges that the Proposed Acquisition, if consummated, would violate Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18, and Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. § 45, by lessening competition in the market for monofilament fishing line in the United States. The proposed Consent Agreement would remedy the alleged violations by replacing the competition that would be lost in this market as a result of the Proposed Acquisition. ebenthall on PROD1PC69 with NOTICES II. The Parties Jarden is a leading provider of branded consumer products, including outdoor sporting goods, kitchen appliances, firelogs, playing cards, and a wide variety of consumer and medical plastic products. In 2006, Jarden’s revenues were approximately $3.85 billion. In April 2007, Jarden acquired Pure Fishing Inc. (‘‘Pure Fishing’’), a fishing tackle company that sells products under several brands, including Abu Garcia, Berkley, Stren, Mitchell, and Spider. K2 is a leading provider of branded consumer outdoor sports equipment. K2 reported annual sales of $1.4 billion in 2006, attributable to four primary business segments: Marine and Outdoor, Team Sports, Action Sports, and Apparel and Footwear. K2 participates in the fishing tackle markets through its Shakespeare division, marketing products under several brand names including Shakespeare, Ugly Stik, Penn, Pflueger, and Cajun Line. III. Monofilament Fishing Line Monofilament fishing line is the most widely-used and least expensive type of fishing line. While other specialized types of fishing line, including braided (or super line) and fluorocarbon, appear to be growing in popularity, especially VerDate Aug<31>2005 15:00 Aug 14, 2007 Jkt 211001 among avid anglers, the vast majority of fishing line purchases in the United States are of monofilament line. Monofilament line is acceptable for a broad range of fishing conditions, but is particularly well-suited for situations in which it is important for the fishing line to be flexible and stretch. Due to its low cost and ease of use, monofilament line is popular with both novices and more avid anglers. The evidence indicates that anglers, if faced with a five to ten percent increase in the price of monofilament line, would not switch to braided line or fluorocarbon line. Therefore, monofilament line is the relevant product market in which to analyze the competitive effects of the proposed acquisition. The relevant geographic market in which to assess the impact of the Proposed Acquisition is the United States. Although monofilament line appears to be routinely sourced by U.S. sellers from contract manufacturers worldwide, no foreign firm is a significant seller in the U.S. and, in light of the entry conditions discussed below, none is likely to become significant within two years. The market for monofilament fishing line is highly concentrated, with Pure Fishing’s three brands, Berkley, Stren, and Spider, dominating the market. Although Shakespeare has a smaller presence in the market than Pure Fishing, Shakespeare appears to be the second- largest firm in the monofilament fishing line market and Pure Fishing’s most significant competitor, due, in part, to the recent success of its Cajun Line, a red monofilament that is growing in popularity. Entry into the market for monofilament fishing line that would be sufficient to deter or counteract the anticipated competitive effects of the proposed transaction is unlikely to occur in the next two to three years. Although obtaining a source of supply for monofilament line does not constitute a significant barrier to entry, the need to develop brand equity, distribution, infrastructure, and a marketing presence for the brand poses a significant barrier to de novo entry and to entry by participants in adjacent markets. The relatively limited sales opportunities in the monofilament fishing line market make it unlikely that a new entrant could justify the investment required to develop and market a new fishing line brand. The Proposed Acquisition raises significant competitive concerns in the U.S. market for monofilament fishing line. Pure Fishing’s sales account for a substantial share of the monofilament PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 market. Shakespeare is Pure Fishing’s most significant competitor. Consumers have benefitted from competition between Shakespeare and Pure Fishing on pricing, promotional spending, and product innovations. Thus, unremedied, the Proposed Acquisition likely would cause anticompetitive harm by enabling Jarden to profit by raising the prices of its monofilament fishing line unilaterally, as well as reducing its incentives to innovate and develop new monofilament fishing line products. IV. The Consent Agreement The proposed Consent Agreement effectively remedies the Proposed Acquisition’s likely anticompetitive effects in the market for monofilament fishing line. The proposed Consent Agreement preserves competition by requiring the divestiture of Cajun Line, Omniflex, Outcast, and SupremeTM (the ‘‘Divested Assets’’) to W.C. Bradley/ Zebco (‘‘Zebco’’) within fifteen (15) days after the Proposed Acquisition is consummated. Shakespeare’s Penn monofilament fishing line was not included in the divested assets because the evidence revealed that this is a rapidly declining brand and did not represent any competitive constraint to Pure Fishing’s fishing line brands. Furthermore, Penn is best known for its high-end fishing reels, and as a result, any remedy involving this brand would unnecessarily present complex brand splitting concerns. The Commission is satisfied that Zebco is a well-qualified acquirer of the divested assets. Zebco is a significant market participant in the fishing tackle market with a variety products, including fishing rods, fishing reels, and fishing rod and reel combination kits. Zebco already has a strong distribution network and knowledgeable sales force with existing relationships with fishing tackle retailers. The proposed Consent Agreement contains several provisions designed to ensure the success of the divested assets to Zebco by requiring that (1) Jarden and K2 take steps to ensure that confidential information relating to the divested assets will not be used by Jarden; (2) Zebco will have the opportunity to enter into employment contracts with certain key individuals who have experience relating to the divested assets; and (3) certain management employees of K2 who were substantially involved in the research, development, or marketing of the divested assets be precluded from working on competitive fishing line products at Jarden for a period of two years. E:\FR\FM\15AUN1.SGM 15AUN1 45817 Federal Register / Vol. 72, No. 157 / Wednesday, August 15, 2007 / Notices The Order to Maintain Assets that is included in the proposed Consent Agreement requires that Jarden and K2 protect the viability, marketability, and competitiveness of the divestiture assets between the time the Commission accepts the proposed Consent Agreement for placement on the public record and when the divestitures take place. The purpose of this analysis is to facilitate public comment on the proposed Consent Agreement, and it is not intended to constitute an official interpretation of the proposed Decision and Order or to modify its terms in any way. By direction of the Commission. Richard C. Donohue Acting Secretary [FR Doc. E7–16060 Filed 8–14–07: 8:45 am] BILLING CODE 6750–01–S DEPARTMENT OF HEALTH AND HUMAN SERVICES Agency for Healthcare Research and Quality Agency Information Collection Activities: Proposed Collection; Comment Request Agency for Healthcare Research and Quality, Department of Health and Human Services. ACTION: Notice. AGENCY: SUMMARY: This notice announces the intention of the Agency for Healthcare Research and Quality (AHRQ) to request that the Office of Management and Budget (OMB) allow the renewal of the generic information collection project: ‘‘Questionnaire and Data Collection Testing, Evaluation, and Research for the Agency for Healthcare Research and Quality’’ In accordance with the Paperwork Reduction Act of 1995, Public Law 104–13 (44 U.S.C. 3506(c)(2)(A)), AHRQ invites the public to comment on this proposed information collection. DATES: Comments on this notice must be received by October 15, 2007. ADDRESSES: Written comments should be submitted to: Doris Lefkowitz, Reports Clearance Officer, AHRQ, 540 Gaither Road, Room #5036, Rockville, MD 20850, or by e-mail at doris.lefkowitz@ahrq.hhs.gov. Copies of the proposed collection plans, data collection instruments, and specific details on the estimated burden can be obtained from AHRQ’s Reports Clearance Officer. FOR FURTHER INFORMATION CONTACT: Doris Lefkowitz, AHRQ, Reports Clearance Officer, (301) 427–1477. SUPPLEMENTARY INFORMATION: Proposed Project ‘‘Questionnaire and Data Collection Testing, Evaluation, and Research for the Agency for Healthcare Research and Quality.’’ AHRQ plans to employ the latest techniques to improve its current data collections by developing new surveys, or information collection tools and methods, and by revising existing collections in anticipation of, or in response to, changes in the healthcare field, for a three-year period. The clearance request is limited to research on in formation collection tools and methods, and related reports and does not extend to the collection of data for public release or policy formation.’’ A generic clearance for this work allows AHRQ to draft and test information collection tools and methods more quickly and with greater lead time, thereby managing project time more efficiently and improving the quality of the methodological data the agency collects. In some instances the ability to pretest/pilot-test information collection surveys, tools and methods, in anticipation of work, or early in a project, may request in the decision not to proceed with particular survey activities. This would save both public and private resources and effectively eliminate or reduce respondent burden. Many of the tools AHRQ develops are made available to users in the private sector. The healthcare environment changes rapidly and inquires a quick response from the agency to provide appropriately refined tools. A generic clearance for this methodological work will facilitate the agency’s timely development of information collection tools and methods suitable for use in changing conditions. It is particularly important to refine AHRQ’s tools because they have a widespread impact. These tools are frequently made available to help the private sector to improve health care quality by enabling the gathering of useful data for analysis. They are also used to provide information about health care quality to consumers and purchasers so that they can make marketplace choices to influence and improve health care quality. The current clearance will expire January 31, 2008. This is a request for a generic approval from OMB to test information collection instruments and methods over the next three years. Methods of Collection Participation in the testing of information collection tools and methods will be fully voluntary and non-participation will have no effect on eligibility for, or receipt of, future AHRQ health services research support or on future opportunities to participate in research or to obtain informative research results. Specific estimation procedures, when used, will be described when we notify OMB as to actual studies conducted under the clearance. Estimated Annual Respondent Burden Number of respondents Type of research activity Estimated time per respondent (minutes) Total burden hours 100 2,400 7,600 200 100 100 60 20 30 90 60 60 100 800 3,800 300 100 100 Totals ........................................................................................................................ ebenthall on PROD1PC69 with NOTICES Face-to-Face Interviews .................................................................................................. Field Tests (short) ............................................................................................................ Field Tests (long) ............................................................................................................. Lab Experiments .............................................................................................................. Focus Groups .................................................................................................................. Cognitive Interviews ......................................................................................................... 10,500 Not Applicable 5,200 This information collection will not impose a cost burden on the respondents beyond that associated VerDate Aug<31>2005 17:49 Aug 14, 2007 Jkt 211001 with their time to provide the required data. There will be no additional costs PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 for capital equipment, software, computer services, etc. E:\FR\FM\15AUN1.SGM 15AUN1

Agencies

[Federal Register Volume 72, Number 157 (Wednesday, August 15, 2007)]
[Notices]
[Pages 45815-45817]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-16060]


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FEDERAL TRADE COMMISSION

[File No. 071 0168]


Jarden Corporation and K2 Incorporated; Analysis of Agreement 
Containing Consent Orders to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

-----------------------------------------------------------------------

SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint and the terms of the consent order--embodied in the consent 
agreement--that would settle these allegations.

DATES: Comments must be received on or before September 7, 2007.

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to ``Jarden/K2, File No. 071 0168,'' to 
facilitate the organization of comments. A comment filed in paper form 
should include this reference both in the text and on the envelope, and 
should be mailed or delivered to the following address: Federal Trade 
Commission/Office of the Secretary, Room 135-H, 600 Pennsylvania 
Avenue, NW, Washington, D.C. 20580. Comments containing confidential 
material must be filed in paper form, must be clearly labeled 
``Confidential,'' and must comply with Commission Rule 4.9(c). 16 CFR 
4.9(c) (2005).\1\ The FTC is requesting that any comment filed in paper 
form be sent by courier or overnight service, if possible, because U.S. 
postal mail in the Washington area and at the Commission is subject to 
delay due to heightened security precautions. Comments that do not 
contain any nonpublic information may instead be filed in electronic 
form as part of or as an attachment to e-mail messages directed to the 
following e-mail box: consentagreement@ftc.gov. The FTC Act and other 
laws the Commission administers permit the collection of public 
comments to consider and use in this proceeding as appropriate. All 
timely and responsive public comments, whether filed in paper or 
electronic form, will be considered by the Commission, and will be 
available to the public on the FTC website, to the extent practicable, 
at www.ftc.gov. As a matter of discretion, the FTC makes every effort 
to remove home contact information for individuals from the public 
comments it receives before placing those comments on the FTC website. 
More information, including routine uses permitted by the Privacy Act, 
may be found in the FTC's privacy policy, at http://www.ftc.gov/ftc/
privacy.htm.

FOR FURTHER INFORMATION CONTACT: Brendan J. McNamara (202) 326-3703, 
Bureau of Competition, Room NJ-5108, 600 Pennsylvania Avenue, NW, 
Washington, D.C. 20580.
---------------------------------------------------------------------------

    \1\ The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See Commission Rule 4.9(c), 
16 CFR 4.9(c).

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and Sec.  2.34 of 
the Commission Rules of Practice, 16 CFR 2.34, notice is hereby given 
that the above-captioned consent agreement containing a consent order 
to cease and desist, having been filed with and accepted, subject to 
final approval, by the Commission, has been placed on the public record 
for a period of thirty (30) days. The following Analysis to Aid Public 
Comment describes the terms of the consent agreement, and the 
allegations in the complaint. An electronic copy of the full text of 
the consent agreement package can be obtained from the FTC Home Page 
(for August 9, 2007), on the World Wide Web, at http://www.ftc.gov/os/
2007/08/index.htm. A paper copy can be obtained from the FTC Public 
Reference Room, Room 130-H, 600 Pennsylvania Avenue, N.W., Washington, 
D.C. 20580, either in person or by calling (202) 326-2222.
    Public comments are invited, and may be filed with the Commission 
in either paper or electronic form. All comments should be filed as 
prescribed in the ADDRESSES section above, and must be received on or 
before the date specified in the DATES section.

Analysis of Agreement Containing Consent Order to Aid Public Comment

I. Introduction

    The Federal Trade Commission (``Commission'') has accepted, subject 
to final approval, an Agreement Containing Consent Orders (``Consent 
Agreement'') from Jarden Corporation (``Jarden'') and K2 Incorporated 
(``K2''). The purpose of the proposed Consent Agreement is to remedy 
the anticompetitive effects that would otherwise be likely to result 
from Jarden's acquisition of K2. Under the terms of the proposed 
Consent Agreement, Jarden and K2 are required

[[Page 45816]]

to divest assets related to K2's Cajun Line[reg], Omniflex[reg], 
Outcast[reg], and Supreme\TM\ monofilament fishing line products. The 
proposed Consent Agreement has been placed on the public record for 
thirty days to solicit comments from interested persons. Comments 
received during this period will become part of the public record. 
After thirty days, the Commission will again review the proposed 
Consent Agreement and the comments received, and will decide whether it 
should withdraw from the proposed Consent Agreement or make it final.
    Pursuant to an Agreement and Plan of Merger dated April 24, 2007, 
Jarden proposes to acquire K2 in a transaction valued at approximately 
$1.2 billion (``Proposed Acquisition''). The Commission's complaint 
alleges that the Proposed Acquisition, if consummated, would violate 
Section 7 of the Clayton Act, as amended, 15 U.S.C. Sec.  18, and 
Section 5 of the Federal Trade Commission Act, as amended, 15 U.S.C. 
Sec.  45, by lessening competition in the market for monofilament 
fishing line in the United States. The proposed Consent Agreement would 
remedy the alleged violations by replacing the competition that would 
be lost in this market as a result of the Proposed Acquisition.

II. The Parties

    Jarden is a leading provider of branded consumer products, 
including outdoor sporting goods, kitchen appliances, firelogs, playing 
cards, and a wide variety of consumer and medical plastic products. In 
2006, Jarden's revenues were approximately $3.85 billion. In April 
2007, Jarden acquired Pure Fishing Inc. (``Pure Fishing''), a fishing 
tackle company that sells products under several brands, including Abu 
Garcia[reg], Berkley[reg], Stren[reg], Mitchell[reg], and Spider[reg].
    K2 is a leading provider of branded consumer outdoor sports 
equipment. K2 reported annual sales of $1.4 billion in 2006, 
attributable to four primary business segments: Marine and Outdoor, 
Team Sports, Action Sports, and Apparel and Footwear. K2 participates 
in the fishing tackle markets through its Shakespeare division, 
marketing products under several brand names including 
Shakespeare[reg], Ugly Stik[reg], Penn[reg], Pflueger[reg], and Cajun 
Line[reg].

III. Monofilament Fishing Line

    Monofilament fishing line is the most widely-used and least 
expensive type of fishing line. While other specialized types of 
fishing line, including braided (or super line) and fluorocarbon, 
appear to be growing in popularity, especially among avid anglers, the 
vast majority of fishing line purchases in the United States are of 
monofilament line. Monofilament line is acceptable for a broad range of 
fishing conditions, but is particularly well-suited for situations in 
which it is important for the fishing line to be flexible and stretch. 
Due to its low cost and ease of use, monofilament line is popular with 
both novices and more avid anglers. The evidence indicates that 
anglers, if faced with a five to ten percent increase in the price of 
monofilament line, would not switch to braided line or fluorocarbon 
line. Therefore, monofilament line is the relevant product market in 
which to analyze the competitive effects of the proposed acquisition.
    The relevant geographic market in which to assess the impact of the 
Proposed Acquisition is the United States. Although monofilament line 
appears to be routinely sourced by U.S. sellers from contract 
manufacturers worldwide, no foreign firm is a significant seller in the 
U.S. and, in light of the entry conditions discussed below, none is 
likely to become significant within two years.
    The market for monofilament fishing line is highly concentrated, 
with Pure Fishing's three brands, Berkley[reg], Stren[reg], and 
Spider[reg], dominating the market. Although Shakespeare has a smaller 
presence in the market than Pure Fishing, Shakespeare appears to be the 
second- largest firm in the monofilament fishing line market and Pure 
Fishing's most significant competitor, due, in part, to the recent 
success of its Cajun Line, a red monofilament that is growing in 
popularity.
    Entry into the market for monofilament fishing line that would be 
sufficient to deter or counteract the anticipated competitive effects 
of the proposed transaction is unlikely to occur in the next two to 
three years. Although obtaining a source of supply for monofilament 
line does not constitute a significant barrier to entry, the need to 
develop brand equity, distribution, infrastructure, and a marketing 
presence for the brand poses a significant barrier to de novo entry and 
to entry by participants in adjacent markets. The relatively limited 
sales opportunities in the monofilament fishing line market make it 
unlikely that a new entrant could justify the investment required to 
develop and market a new fishing line brand.
    The Proposed Acquisition raises significant competitive concerns in 
the U.S. market for monofilament fishing line. Pure Fishing's sales 
account for a substantial share of the monofilament market. Shakespeare 
is Pure Fishing's most significant competitor. Consumers have 
benefitted from competition between Shakespeare and Pure Fishing on 
pricing, promotional spending, and product innovations. Thus, 
unremedied, the Proposed Acquisition likely would cause anticompetitive 
harm by enabling Jarden to profit by raising the prices of its 
monofilament fishing line unilaterally, as well as reducing its 
incentives to innovate and develop new monofilament fishing line 
products.

IV. The Consent Agreement

    The proposed Consent Agreement effectively remedies the Proposed 
Acquisition's likely anticompetitive effects in the market for 
monofilament fishing line. The proposed Consent Agreement preserves 
competition by requiring the divestiture of Cajun Line[reg], 
Omniflex[reg], Outcast[reg], and Supreme\TM\ (the ``Divested Assets'') 
to W.C. Bradley/Zebco (``Zebco'') within fifteen (15) days after the 
Proposed Acquisition is consummated.
    Shakespeare's Penn[reg] monofilament fishing line was not included 
in the divested assets because the evidence revealed that this is a 
rapidly declining brand and did not represent any competitive 
constraint to Pure Fishing's fishing line brands. Furthermore, Penn is 
best known for its high-end fishing reels, and as a result, any remedy 
involving this brand would unnecessarily present complex brand 
splitting concerns.
    The Commission is satisfied that Zebco is a well-qualified acquirer 
of the divested assets. Zebco is a significant market participant in 
the fishing tackle market with a variety products, including fishing 
rods, fishing reels, and fishing rod and reel combination kits. Zebco 
already has a strong distribution network and knowledgeable sales force 
with existing relationships with fishing tackle retailers.
    The proposed Consent Agreement contains several provisions designed 
to ensure the success of the divested assets to Zebco by requiring that 
(1) Jarden and K2 take steps to ensure that confidential information 
relating to the divested assets will not be used by Jarden; (2) Zebco 
will have the opportunity to enter into employment contracts with 
certain key individuals who have experience relating to the divested 
assets; and (3) certain management employees of K2 who were 
substantially involved in the research, development, or marketing of 
the divested assets be precluded from working on competitive fishing 
line products at Jarden for a period of two years.

[[Page 45817]]

    The Order to Maintain Assets that is included in the proposed 
Consent Agreement requires that Jarden and K2 protect the viability, 
marketability, and competitiveness of the divestiture assets between 
the time the Commission accepts the proposed Consent Agreement for 
placement on the public record and when the divestitures take place.
    The purpose of this analysis is to facilitate public comment on the 
proposed Consent Agreement, and it is not intended to constitute an 
official interpretation of the proposed Decision and Order or to modify 
its terms in any way.

    By direction of the Commission.
Richard C. Donohue
Acting Secretary
[FR Doc. E7-16060 Filed 8-14-07: 8:45 am]
BILLING CODE 6750-01-S