Performance Sports Group Ltd said it would seek approval from a U.S. bankruptcy court for the sale of its assets to Sagard Capital Partners LP and Fairfax Financial Holdings Ltd after it failed to attract other bids in an auction process.
Sagard, Performance’s biggest shareholder, and Fairfax had agreed in October to act as “stalking horse” bidders to buy most of the Bauer ice hockey gear maker’s assets and its North American units for $575 million.
Under the bidding procedures approved by the courts, interested parties were required to submit qualified bids to acquire substantially all of the assets of the company no later than January 25, 2017. As no qualified bids were submitted by that deadline, the auction scheduled for January 30, 2017 will not be held.
The company said it will seek the approval of the courts for the sale at the final sale hearing, which is scheduled to be held on February 6 with the anticipated closing expected to occur on or about February 23, but not later than February 27, subject to the receipt of applicable regulatory approvals and the satisfaction of waiver of other customary closing conditions.
Performance Sports Group anticipates its operations will continue uninterrupted in the ordinary course of business and that day-to-day obligations to employees, suppliers of goods and services and the company’s customers will continue to be met.
Photo courtesy Bauer
