Fairfax Financial buys controlling stake in Bauer Hockey’s parent company

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Bauer News

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Bauer has controlled more than half of the North American hockey equipment market for years, with some estimates ranging as high as 60 per cent

The Toronto-based holding company Fairfax Financial Holdings agreed to acquire an equity interest in Peak Achievement Athletics Inc., which owns Bauer Hockey.

Fairfax paid US$154-million for its stake in Peak in 2017 and has since received US$72-million in dividends, the report said.While financial terms of the transaction were not disclosed, The Globe and Mail reported in August that Fairfax and Sagard were looking to sell Bauer for roughly US$800-million. Bauer’s earnings before interest, taxes, depreciation and amortization is just more than US$100-million annually, a source involved in the sale process told The Globe at the time.

Bauer was acquired by Nike Inc. in 1994 for US$395-million and remained part of its athletics empire until 2008, when it was sold in a US$200-million cash deal to private-equity investor Kohlberg & Company and Quebec businessman W. Graeme Roustan. Mr. Roustan served as chair of Bauer’s board of directors until shortly after the company

 

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