ATLANTA — Nike, Inc. is selling its Bauer Hockey subsidiary to Kohlberg & Company and Canadian businessman W. Graeme Roustan for $200 million in cash.
The deal should be completed before the end of Nike’s current fiscal year, or before the end of May.
“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 Mark Parker, Nike’s president and CEO. “Nike Bauer Hockey has been part of the Nike family for 12 years, and its team has done an incredible job.”
Roustan, who will serve as chairman of Bauer Hockey, said, “Bauer is the most coveted hockey brand in the world, dating back to 1927, and is part of hockey’s DNA.”
While the brand primarily provides equipment, it also has apparel, including gloves, warm-ups, fleece, a short, headwear, jackets and a performance base layer grouping.
Nike said it decided to divest Bauer, acquired in 1995, after a strategic review of its subsidiary businesses. As part of the company’s long-term growth strategy, Nike said it is optimizing its portfolio of subsidiary brands, which contribute more than $2 billion in annual revenues, to ensure it is investing in the greatest growth opportunities with the highest returns.
Nike’s wholly-owned subsidiaries include Converse, Inc., Cole Haan Holdings Inc., and Hurley International LLC.
Nike sold its Starter brand, which had been part of its Exeter Brands Group, to Iconix Brands Group late last year for $60 million in cash, and is in the process of acquiring soccer brand Umbro for approximately $565 million.