Sports Apparel Company, Performance Sports Group Might Soon Be Acquired for $575M

Parent company, Performance Sports Group that owns Bauer and Easton is to be sold to its largest investor, Sagard Capital and the Toronto-based investment fund Fairfax Financial for the amount of $575M. It was a beggar’s choice.

The sports apparel company has been in trouble trying to get itself out of debt that has been growing since 2016. This came when the company heard of a stalking horse bid from its largest shareholder in October, 2016.

What is a stalking horse bid?

A stalking horse bid is the type of bid that offers to buy a company’s assets that could be beaten by another but however serves as a floor for subsequent offers.

A sale process was scheduled during which, others interested can put in an offer, gathering in an auction by the end of January, this year.

“As no qualified bids were submitted by the deadline, the auction scheduled for January 30, 2017 will not be held,” Performance Sports said in a release Thursday.

In August 2016, the former company chairman, Graeme Roustan, had said he would buy the company but we have not heard from him as of late.