Canadians claim that “hockey is our game,” but that boast disguises
deep-seated unease over the creeping Americanization of the professional sport.
That is why we hold on to nostalgic fantasies of the Jets returning to Winnipeg, the Nordiques going back to Quebec City, and the Maple Leafs returning to the Stanley Cup playoffs. Sometimes nostalgic fantasies do come true.Top hockey equipment maker Bauer Performance Sports Ltd. announced at the beginning of March that it had completed an initial public offering to sell 10 million shares at $7.50 a share. The money will be used to acquire 100% of Kohlberg Sports Group Inc., and the company will list on the Toronto Stock Exchange.
Founded in London, Ont., in 1927, Bauer produced the first skate in which the blade was permanently secured to the boot. It became a wholly owned subsidiary of Nike in 1994 and rebranded as Nike Bauer, then was sold to private equity investors in 2008. While the shares are priced at the low end of the floated range, CEO Kevin Davis was exuberant. “Our company is on a great growth trajectory, and we have a lot of exciting growth opportunities in the future, and this is a great way for us to have access to consistent capital,” he said. “So we’re really excited about what this means to our future.”
Article written by–ANDReW POTTeR see www.canadianbusiness.com April , 2011 issue
1. Would you consider purchasing common shares in Bauer Performance Sports Ltd.?
2. Do you agree with the CEO that Equity Financing is the best way to obtain cash for future growth?
3. In your opinion in tough economic times would debt financing be considered a safe approach to obtain cash?