A Florida businessman who fell in love with Bauer skates as a youngster growing up on Montreal’s outdoor hockey rinks has purchased the company from sporting giant Nike Inc. for US$200 million.
“There is a definite personal connection to Bauer for me,” said Graeme Roustan, 47, in an interview after he teamed with U.S. private equity firm Kohlberg & Co. to purchase Bauer Hockey.
Roustan was born in Sherbrooke, Que., and moved to Florida 17 years ago.
Roustan, through private holding company Roustan Inc., places equity investments primarily in the arena business and aviation industry. Kohlberg & Co. has invested US$2 billion across six private equity funds. The financial split between the partners was not disclosed.
Bauer, in business since 1927, claims a No. 1 position in the hockey market. It had sales of US$160 million last year and expects to exceed that number in 2008, said CEO Mark Duggan from Bauer’s global headquarters in Greenland, N.H.
More than 300 of Bauer’s 480 employees are in Canada, including at its research and development facilities north of Montreal.
Nike decided to part with the Bauer division after opting to focus on its core footwear and apparel businesses. The move prompted several keen bidders.
Nike CEO Mark Parker said the decision to sell Nike’s subsidiaries, “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.”
Having new, hockey-loving owners will allow the company to continue to thrive, said Duggan.
“We’re really happy, not only with our business today and where the brand is, but the fact we’ll have an opportunity now to really focus on hockey with people who are passionate about the sport.”
Bauer will continue to use the Nike Bauer trademark on existing products for up to two years. No changes to the company are planned, Roustan added.
Nike purchased Bauer from Canstar for US$395 million, with the dream of profiting from an expected explosion of in-line skating. When that didn’t materialize, it sold several manufacturing businesses in the late 1990s. In-line skating now accounts for less than 10% of Bauer’s business.
