With the completion of the sale in bankruptcy proceedings, Performance Sports Group Ltd. said a search for a permanent CEO is underway. Harlan Kent, who previously served as the CEO of Performance Sports Group, will continue to lead the business on an interim basis.
Performance Sports Group Ltd. sold substantially all of the assets of the company and its North American subsidiaries, including its European and global operations, to an acquisition vehicle co-owned by affiliates of Sagard Holdings Inc. and Fairfax Financial Holdings Limited.
The new, privately held company will be a leading developer and manufacturer of ice hockey, roller hockey, lacrosse, baseball and softball sports equipment, as well as related apparel. Its products will be marketed under the Bauer, Mission, Maverik, Cascade and Easton brand names.
The sale is the culmination of the process commenced by the company and its North American subsidiaries pursuant to creditor protection proceedings launched on October 31, 2016 in the Ontario Superior Court of Justice under the companies’ Creditors Arrangement Act, and in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 of Title 11 of the U.S. Code.
The company conducted a court-supervised sale and auction process as part of its Canadian and U.S. court proceedings. The bid made by Sagard and Fairfax served as the “stalking horse” bid for purposes of the process and was ultimately determined to be the successful bid in accordance with the related court-approved bidding procedures. The courts approved the sale and associated reorganization transactions pursuant to orders dated February 6, 2017 and supplemented on February 10, 2017.
Paul Desmarais III, executive chairman of Sagard Holdings, will serve as chairman of the new company as it transitions to new leadership. He said: “We are excited to build upon the achievements of some of the most innovative and iconic brands in sports. In partnership with Fairfax Financial, we look forward to growing a strong business that is committed to serving a loyal base of customers for the long term. We thank all of Performance Sports Group’s people, and especially Harlan Kent, for effectively managing the business through the restructuring process and helping to position it for future success.”
Paul Rivett, president of Fairfax Financial, said: “The business is founded upon the strong pillars of its portfolio of industry-leading brands, strong customer relationships and dedicated employees. We will work with Sagard Holdings and the management team to continue innovating and delivering industry-leading products to consumers around the world. We believe that the business has a very bright future and we are excited to help guide the company for many years to come.”
Kent said: “During the restructuring process, our team worked very hard to continue to provide outstanding products and service to our customers and to be valued partners to our vendors. I am grateful for the hard work and dedication of my colleagues and for the continued support of our customers and vendors. We look forward to working with the new owners to transition the business to its next successful chapter.”
Following closing of the sale, Karyn O. Barsa, C. Michael Jacobi, Harlan Kent and Bob Nicholson have resigned from the board of directors of the company.
Bernard McDonell, chairman of the board of Performance Sports Group, said: “On behalf of the board, we would like to thank the retiring directors, Harlan, and all the Company’s employees for their contributions to bringing this sale to completion. We wish them all the best in their future endeavors.”
Upon consummation of the sale, the company will no longer exist as an operating business and will instead, along with its professional advisors, focus on the completion of its U.S. and Canadian bankruptcy proceedings. This entails, among other things, reconciling claims against the bankruptcy estates and developing a distribution strategy for the sale proceeds in the U.S. and Canadian proceedings, through a liquidating plan or otherwise. Further information will be provided within the context of the Canadian and U.S. court proceedings.
Photo courtesy Easton
