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Hockey Gear Giants CCM and Bauer Hit the Market
In a surprising turn for the hockey equipment industry, two of its most iconic brands, CCM and Bauer, are reportedly up for sale. These companies, renowned for their dominance in the global market of hockey skates, collectively command around 90 percent of all skate sales worldwide. Despite their longstanding presence and strong brand loyalty among Canadian and international hockey players alike, both CCM and Bauer find themselves in the midst of significant business transitions.
Why Are CCM and Bauer Up for Sale?
According to reports from Richard Dufour of La Presse, the sale processes for both CCM and Bauer are well underway. CCM, headquartered in Montreal and previously owned by Adidas before being acquired by Birch Hill in 2017 for $110 million, is currently in the advanced stages of its sale process led by the American investment bank Baird. On the other hand, Bauer, co-owned by Fairfax Financial Holdings and Sagard, is also considering divesting its assets under the banner of Peak Achievement, which includes Maverik Lacrosse.
The Market Dynamics Behind the Sales
The decision to sell CCM and Bauer comes at a time when the hockey market itself is facing challenges. Despite notable events like the Stanley Cup playoffs and increased TV viewership, overall hockey participation rates have not seen substantial growth post-pandemic. Reports indicate that while there has been a recent uptick in registrations in both Canada and the United States, these numbers have yet to surpass pre-pandemic levels consistently.
Financial Strategies and Challenges
In response to stagnant growth in hockey participation, both CCM and Bauer have resorted to raising prices to maintain their profit margins. This strategy, while necessary for sustaining internal returns, poses a significant financial burden on consumers, particularly families already grappling with rising costs associated with minor hockey leagues and related expenses.
Implications for Potential Buyers
As CCM and Bauer attract interest from potential buyers amid their sale processes, the industry speculates on the future ownership and strategic directions these iconic brands may take. With such pivotal players in the hockey equipment market potentially changing hands, stakeholders are closely watching how these developments will unfold and what they could mean for the broader industry landscape.
