Updated : Nike has sold the Bauer brand for $200 million to a private equity firm Kohlberg & Co. and Montreal businessman Graeme Roustan. Bauer will be able to continue to use the Nike name for up 2 years.
The New York Times is reporting that the hockey equipment line for Nike Bauer is up for sale. Nike bought out (Canstar Sports) Bauer in 1995 for $395 million and now Nike Bauer is up for sale with a stagnant hockey equipment market.
The hockey equipment market has experienced very low growth due to rising costs of hockey equipment. Nike Bauer was one of the main participants in raising prices for most pieces of hockey equipment.
Hockey skates are now sold for more than $700, hockey sticks for more than $250 and hockey gloves at $200. Families are finding it harder to afford hockey and less kids are signing up to play this year than last year.
Nike Bauer has set a self-imposed deadline of May 2008 for their hopeful sale. Experts believe that Nike Bauer’s hockey equipment division will be sold, although it may come at a discounted price. Word is that Reebok is very interested in buying Nike Bauer, but anti-trust issues are at the fore-front of that possible deal. Reebok already owns CCM which is the second biggest brand behind Nike Bauer.
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