Bauer Performance Sports Ltd. plans to raise at least Canadian $75 million (U.S. $75 million) in its initial public offering. In an updated filing with the Toronto Stock Exchange, Bauer plans to sell 10 million common shares at prices of C$7.50 per share. Net proceeds will be used to acquire a 100% stake in Kohlberg Sports Group Inc for an unspecified amount.
When Bauer first announced plans to go public in January, the number of shares to be sold, the projected pricing and the amount to be raised wasn't disclosed. Sources said in January Bauer would list a 20 percent stake on the Toronto Stock Exchange, valuing the company at some C$375 million.
The underwriters have an over-allotment option for up to an additional 1.5 million shares at the offering price; however Bauer will not receive any of the proceeds from the sale of the additional shares.
Bauer is incorporated in Canada, but based in New Hampshire. Its stock is expected to be listed on the Toronto Stock Exchange once the IPO officially closes later this month.
Following the offering, Bauer will acquire 100% of Kohlberg Sports Group Inc. from its existing private equity shareholders, including Kohlberg Funds, for a combination of common shares and proportionate voting shares, plus the net IPO proceeds. After the offering, Kohlberg Funds, which currently owns 88.8% of Kohlberg Sports, and its other existing shareholders will own around 69% of the equity and voting interest in Bauer, according to marketing material for the offering. This level will drop to about 64% of the equity and voting interest if the IPO's overallotment option is exercised.
The stock is expected to trade on the Toronto Stock Exchange under the symbol BAU.
