For sale: Nike Bauer
Nike has decided to get out of the hockey business. They've put the Nike Bauer division up for sale and expect to find a buyer and close a deal by May 31. It's not that the brand isn't doing well, it's just $160MM in yearly revenues isn't enough for the sports conglom.
There's been a bit of consolidation in the equipment industry recently, particularly as companies look to grow their business in a market without a lot of growth potential. Youth hockey sales are the main revenue driver yet the sport is still not widely played south of the border.
If The Hockey Company makes an offer, that would put the CCM, Reebok, Koho, Jofa and Bauer brands under one umbrella and give THC market domination.
Industry executives now say even though a number of suitors will probably emerge for NikeBauer, it's doubtful the division will sell for more than $150 million – less than half what Nike originally paid for it.A great article on the history of Nike Bauer and the upcoming sale. Check it out if you want to learn more.
- Toronto Star