Friday, February 22, 2008

NIKE Sells off Bauer Hockey

Big News from Nikebiz

On Feb 21 Nike announced that it has reached a definitive agreement to sell its Bauer Hockey subsidiary to an investor group led by Kohlberg & Company and Canadian businessman W. Graeme Roustan for $200 million in cash.

Nike originally paid $430 million for Bauer. Ouch.

"We're pleased to have reached an agreement for Bauer with strategic buyers who have a passion for hockey and are committed to continue to invest in Bauer's long-term growth and brand leadership," said Nike, Inc. President and CEO Mark Parker. "Nike Bauer Hockey has been part of the Nike family for 12 years, and its team has done an incredible job. Selling this great hockey company was a tough decision but one that was in the best interests of Nike and Bauer as we each look to maximize our respective growth opportunities."

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.

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