It appears the hockey market has entered into a consolidation cycle once again. Just six short months after Bauer Hockey was acquired from Nike by Kohlberg & Company and Montreal businessman W. Graeme Roustan, Bauer has dropped the Nike moniker and instead added Mission-ITECH to its business. Terms of the deal were not disclosed, but in an exclusive interview with Sports Executive Weekly, Steve Jones, director of communications for Bauer Hockey, laid out plans for the future of the two business.
“The deal officially closed when we announced it, but were still working through exactly what everything will become,” said Jones. “Most of the Mission-ITECH product line will be rebranded as Bauer going forward starting with the 2009 product line, which will be delivered in May and June 2009. The major exception is Mission Roller Hockey, which will remain as such. They just do such a good job there and have such a strong brand name that we cant lose that. Ice, however, will be Bauer.”
With the majority of the Mission and ITECH business folding under the Bauer name, it is no surprise that the majority of Mission-ITECHs facilities will be closed down. Mission-ITECH’s facility in Kirkland, Quebec and its distribution facility in Plattsburgh, N.Y. will remain open until May 31, 2009 to finish out the current round of product. Approximately 140 non-union employees will be impacted by the multi-phased closure of both facilities. However, Missions offices in California will remain open beyond that point to both focus on roller hockey and to serve as a sales base.
Roustan and Kohlberg & Co. acquired Bauer from Nike for $200 million in February of this year as Nike looked to focus on businesses and market segment that held greater growth opportunities. Since the acquisition, the new ownership group has supplied Bauer with everything it needs to continue to grow.
“The ownership group is unbelievable,” said Jones. “They absolutely are upholding their promise to help grow our brand and increase our position and prestige in the marketplace. This acquisition is just the first example of that.”
Jones sees major synergies in the technology and design skills both business already have and how they can be brought together. “I am really excited about the R&D opportunities between our two teams with Mission providing their expertise in Face Protection, Goalie Protection and Protective Apparel and Bauer supplying our expertise in Skates and Sticks. Mission-Itech is proven in all three of those categories and adding the strength of the Bauer name to their top of the line products will create gear the consumer cannot pass up.”
Bauer Hockey will provide affected Mission-ITECH employees financial assistance and outplacement counseling. Bauer Hockey continues to employ nearly 300 Canadian employees More than half of Bauer Hockey’s employees are based in Canada.
Finally, Jones as well as many others in the industry feel that the hockey market is ripe for a major round of consolidations. “Youre going to see a lot of consolidation in the hockey market. More is coming and this definitely isnt the last. It wont just be us involved, but I think when it all shakes out you will have three or four major brands left in the space. We are just in that part of the cycle again.”
