Toronto holding company Fairfax becomes sole owner of hockey equipment manufacturer Bauer.
Fairfax has agreed with its partner Sagard to buy the stake held by the alternative investment platform belonging to the Montreal financial conglomerate Power Corporation.
The value of the transaction was not disclosed. The transaction gives Fairfax control of the Peak company and its portfolio of brands including Bauer Hockey, Cascade Lacrosse and Maverik Lacrosse.
Before taking the name Peak Achievement and belonging to the Fairfax-Sagard consortium, Bauer’s umbrella entity was called Performance Sports Group and was listed on the Toronto Stock Exchange. In the fall of 2016, the company initiated procedures under the Companies’ Creditors Arrangement Act to facilitate its restructuring.
Fairfax and Sagard bought the assets in 2017 in a transaction then valued at US575 million.
The Press revealed at the beginning of July that Fairfax and Sagard were considering selling off Bauer and that the American bank Morgan Stanley was working on the matter.
While Bauer’s head office is located near Boston, its innovation center is located in Blainville.
“The fact that Bauer Hockey remains owned by Canadians reflects the importance of this sport in Canadian culture,” commented Peak CEO Ed Kinnaly in a press release.
“Ed and his management team have positioned Bauer on the path to growth and success for years to come,” said Fairfax CEO Prem Watsa.
The transaction, which is expected to be finalized by the end of the year, comes as CCM – the other major hockey equipment manufacturer – was also put up for sale earlier this year.
CCM, whose head office is in Montreal, has been owned by the Ontario investment firm Birch Hill for seven years. Birch Hill paid US110 million for CCM in 2017.
CCM and Bauer hold dominant positions in their industries. Together, these brands account for approximately 90% of skate sales worldwide.
Another hockey equipment manufacturer was also put up for sale recently. The Raymond James firm was hired as banker to manage the sales process for the True company, which belongs to the New York firm Lincolnshire Management. True’s products are notably worn by star players like forward Mitch Marner of the Toronto Maple Leafs and star goaltender Connor Hellebuyck of the Winnipeg Jets.
True Sports also manufactures other sports equipment, including golf club shafts.