Nike sells BauerTuesday, 29 April 2008
Global sports company has announced the completion of its previously disclosed sale of the company’s Bauer Hockey subsidiary to an investor group led by Kohlberg & Company and Canadian businessman W. Graeme Roustan for $200 million in cash. The company also announced that Bauer CEO Mark Duggan, a long-time Nike executive, will remain with Nike following the sale.
“We’re pleased to have completed the sale and are delighted that Mark has decided to remain with Nike,” said Lee Bird, president of Nike’s subsidiaries group. “Mark leaves Bauer Hockey in excellent shape with record revenue and pretax income and strong positioning as the No. 1 brand in the marketplace.”
Bauer, hockey’s leading manufacturer, has delivered innovative products for over 80 years. Founded in 1927, Bauer developed the first skate with the blade attached to the boot, forever changing the game of hockey. Since then, Bauer has continued to develop the most sought after products in the industry, including the widely successful Supreme and Vapor lines of equipment.
Nike decided to divest Bauer, acquired in 1995, following a strategic review of the company’s subsidiary businesses. As part of the company’s long-term growth strategy, Nike is optimizing its portfolio of subsidiary brands, which contribute more than $2 billion in annual revenues, to ensure the company is investing in the greatest growth opportunities with the highest returns.
Under the terms of the deal, Bauer will continue to use the Nike Bauer Hockey trademark on existing products for a period of up to two years.