Bauer Performance Sports Ltd. (TSX: BAU), a world leading designer, developer, manufacturer, and marketer of ice and roller hockey equipment, has closed its initial public offering (IPO) of 10 million common shares priced at $7.50 per share for gross proceeds of $75 million.
The net proceeds, along with certain share consideration, will be used to acquire 100% of Kohlberg Sports Group Inc. from its securityholders.
Bauer Performance Sports was formed under BCBCA on December 2, 2010 for the sole purpose of acquiring 100% of Kohlberg Sports Group Inc., a Cayman Island corporation, from its securityholders 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 $70,500,000 in cash being the net proceeds of the offering.
The offering was made through a syndicate of underwriters led by RBC Capital Markets and CIBC, and including BMO Capital Markets, Scotia Capital Inc., TD Securities Inc. and Macquarie Capital Markets Canada Ltd.
Stikeman Elliott LLP and Ogilvy Renault LLP provided legal services to Bauer and the underwriters respectively.
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 securityholders of Kohlberg will receive additional $10,575,000 and reduce their holding to 61.7% equity and voting interest in Bauer (51.4% on a fully diluted basis).
Founded by the Bauer family in Kitchener, Ontario in 1927, the Bauer Business was acquired by Nike, Inc. in 1995. In 1997, Nike introduced a line of Nike branded equipment alongside the existing line of Bauer branded equipment. In April 2008, Kohlberg & Company acquired the Bauer Business from Nike for US $196.75 million.
Kohlberg Sports’ securityholders 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., company management.
Bauer Performance Sports is headquartered in Greenland, New Hampshire.
