Performance Sports Group Ltd. obtained the approval of the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice for the sale of substantially all of the assets of the company and its North American subsidiaries to an acquisition vehicle co-owned by affiliates of Sagard Holdings Inc. and Fairfax Financial Holdings Limited. The purchase price was U.S. $575 million in aggregate, subject to certain adjustments, and the assumption of related operating liabilities pursuant to the “stalking horse” asset purchase agreement.
The company anticipates that the completion of the sale will occur on or about February 23, 2017, but not later than February 27, 2017, subject to the receipt of applicable regulatory approvals and the satisfaction or waiver of other customary closing conditions. While the sale order was received today, the Courts will continue on Wednesday, February 8 to consider a limited objection related to the assignment to the purchaser of a license and related agreements with Q30 Sports, LLC. The assignment of this license and related agreements is a condition to closing.
“We are pleased to have received the Courts’ approval of the sale of Performance Sports Group’s business to an investor group led by Sagard Holdings and Fairfax Financial, which we continue to believe represents the best path forward for our customers, vendors, retail and business partners, employees and other stakeholders,” said Harlan Kent, chief executive officer, Performance Sports Group. “We look forward to completing the sale in the coming weeks and we remain focused on continuing to deliver our high-quality products across all our brands to our customers and consumers.”
Paul Desmarais III, executive chairman of Sagard Capital, said: “We are very pleased to have achieved today’s important milestone in the U.S. and Canadian courts. We are looking forward to continuing work with Fairfax and the PSG team to build an even stronger company for the long term around its iconic sporting brands.”
Paul Rivett, president of Fairfax, said: “We are extremely excited to have the best brands and a partnership with Sagard that provides the stable, long-term ownership necessary to continue innovating for the future.”
Performance Sports Group anticipates that its operations will continue uninterrupted in the ordinary course of business and that day-to-day obligations to its employees, suppliers of goods and services and customers will continue to be met through to closing of the sale.
Performance Sports Group owns Bauer, Mission, Maverik, Cascade, Inaria and Easton. In addition, the company distributes its hockey products through its Burlington, Massachusetts and Bloomington, Minnesota Own The Moment Hockey Experience retail stores.
Photo courtesy Performance Sports Group