Bauer Performance Sports Ltd. has closed its initial public offering (IPO) of 10 million common shares priced at Canadian $7.50 per share for gross proceeds of Canadian $75 million (U.S. $75mm). The net proceeds, along with certain share consideration, will be used to acquire 100% of Kohlberg Sports Group Inc. from its security holders.
In its first day of trading on Thursday, the stock opened at 7.45 and closed the day at that price. The stock ranged from 7.30 7.45 on the day.
Bauer Performance Sports was formed under BCBCA on Dec. 2, 2010 for the sole purpose of acquiring 100% of Kohlberg Sports Group Inc., a Cayman Island corporation, from its security holders in exchange for a combination of common shares and proportionate voting shares, representing a 66.7% equity and voting interest in the company (55.5% on a fully diluted basis), plus $70.5 million in cash being the net proceeds of the offering.
The underwriters have been granted an over-allotment option, exercisable for a period of 30 days following the closing date, to purchase up to an additional 1.5 million common shares at the IPO price of $7.50. Bauer will not receive proceeds from the sale of these additional common shares, if any.
If the over-allotment options were to be exercised in full, the security holders of Kohlberg will receive additional $10.6 million and reduce their holding to 61.7% equity and voting interest in Bauer (51.4% on a fully diluted basis).
In April 2008, Kohlberg & Company acquired the Bauer Business from Nike for US $196.75 million.
Kohlberg Sports' security holders and principal shareholders of Bauer include Kohlberg Investors VI, L.P., Kohlberg TE Investors VI, L.P., Partners Group Access 72, L.P., AEA Mezzanine Fund LP, GE Capital Equity Holdings, Inc., Kohlberg Partners VI, L.P., AEA Mezzanine (Unleveraged) Fund LP, KOCO Investors VI, L.P., and company management.
The company designs, manufacturers
and sells sports equipment and clothing under several brands including
Bauer Hockey, Mission Roller Hockey and Maverik Lacrosse.
