Performance Sports Group Ltd. (NYSE : PSG) (TSX : PSG). “Performance Sports Group” (or the “Company”) is a leader in the development and manufacture of high-performance sports apparel and equipment. Today, it announced that it had acquired Easton Hockey Holdings, Inc.
Easton Hockey’s innovation heritage will be added to the Company’s Bauer Hockey business. The acquisition also includes intellectual property assets that will enhance the Company’s product lines under EASTON/BAUER brands. The Company will also have exclusive rights to the EASTON brand in all other sports than archery and cycling. Since April 2014, when the Company acquired Easton Baseball/Softball’s business, the Company has owned the EASTON trademark and licensed the use of that brand in the categories of hockey and cycling. The Company will continue licensing the brand for archery and cycling.
Easton Hockey
Amir Rosenthal (PSG Brands President) said, “This transaction is exciting for our company because we bring another business with an innovation history to Performance Sports Group.” EASTON is a long-standing brand in the hockey industry. Easton Hockey pioneered the use of aluminum and composite sticks in hockey. We believe that by focusing on the success of the stick category and utilizing the resources and stability of a larger organization, we can help and grow the EASTON brand within this key category and other equipment categories.
All relevant patents, inventor, sales orders, accounts toddlers skates receivable, goodwill and other assets will be included in the acquisition. Certain liabilities associated with the acquired assets will also be assumed. A transitional service agreement will allow the seller to provide operational support to the Company to aid in the integration of Easton Hockey. The Company expects the Easton Hockey business to operate at break-even EBITDA within the first 12 months of closing. It will also generate positive cash flow. The Company expects to report an accounting gain from bargain purchases in the third quarter fiscal 2016. This is due to the fair value of excess assets and liabilities that was acquired above the purchase price. Additional information about the acquisition can also be found in the Company’s quarterly Form 10-Q report for the second quarter ending November 30, 2015.
About Performance Sports Group Ltd
Performance Sports Group Ltd. (NYSE : PSG), (TSX : PSG), is a major developer and manufacturer of ice, roller, and softball sports equipment as well as apparel and soccer clothing. It is the world’s leading hockey brand and the most well-known. The Company holds the No. 1 North American position for baseball and softball. The company’s products are sold worldwide by independent distributors and sales representatives under the brand names BAUER, MISSION and MAVERIK. The Company’s goal is to grow its market share in all product types and pursue strategic acquisitions.
