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thawu

Easton selling divisions, Bauer Performance Sports rumored to buy baseball/softball

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It's simple, Easton hockey has no value to Bauer. They have no product that Bauer doesn't do better or just as good. When they bought Mission/Itech, they wanted Itech Goalie, Facial, the patents on Undergarmets, and Mission Roller. All other Mission/Itech products were useless to Bauer. I just can't see Bauer licensing a name to someone who will be there direct competitor. I can only see this becoming an in-house brand for some major dealer.

But who knows, I could be completely wrong.

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An independent person/group is in negotiations for the Hockey division. It'll be interesting to see who purchases it, as of now, it's not an existing hockey manufacturer. The aluminum/bike parts division is their money maker. In the end, that may all that's left.

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Archery was broken off years ago and is run by Easton Technical Products.

Big Bang Distribution runs AHEAD and sells their drumsticks to retailers in US, Canada, and Mexico.

Easton Bell Sports is now Easton Hockey (name via license), Easton Cycling (name via license), Bell Helmets, Giro Helmets, Blackburn Design.

That doesn't mention Hoyt. Has Hoyt already been sold off and I never heard about it?

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"As a result of the acquisition, BPS will own the EASTON brand and the Easton Baseball/Softball business while Easton-Bell Sports will retain the Easton Hockey and Easton Cycling businesses. At closing, BPS will enter into a license agreement to permit Easton-Bell Sports to use the EASTON name in hockey and cycling only. No other businesses from the Easton-Bell Sports portfolio are included as part of this transaction."

BPS looking at a cycling company by chance?

It's a growing, high-margin industry. That makes a lot of sense, considering their need to increase revenues in order to satisfy shareholders.

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So I had a couple conversations today. Unfortunately I didn't learn much that wasn't already discussed here, at least much I can share. The potential buyer of Easton hockey is another PE firm and I was told a deal is "close".

One thing I was also told, though I'm not sure if this is correct, is that since the Bauer deal and the hockey division deal were being negotiated simultaneously there was some talk about Bauer potentially being willing to continue to license if the PE firm currently in negotiations closed the deal. That part of the deal would only cover this specific PE buyer, so if the buyer dropped out another buyer wouldn't have access to the license. Now, nobody I talked to seems to know if this made it into the final agreement. And my opinion is that since the press release was so specific about the license I would doubt the licensing provision made it into the final deal. Also, my source actually seemed genuinely surprised that the press release was so explicit about Bauer buying the brand name and the licensing agreement.

One other potential twist, this person was actually under the impression that the brand name was owned by Jim Easton directly, not EBS or Fenway Partners. So it's possible the brand was part of a side deal, which would potentially give them some leverage relating to transferring the license to the hockey division buyer. That would help explain why the press release was so specific about the purchase of the brand. However, I find this to be extremely unlikely because I really doubt Fenway partners would have allowed Jim Easton to retain ownership of the brand name in their original purchase of Easton. And if Fenway did allow him to keep it, whoever negotiated that deal should be fired. Though, from the sound of it, the EBS deal is such a dog for Fenway that person might already be gone.

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If you're wanting to stock up product, I'd wait until something more concrete comes out in terms of Easton Hockey. Everything is still being produced and launched this year so the name isn't going to get phased out, if it does at all, until at least 2015.

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This makes me very curious to see what's actually in the licensing agreement. I can see the possibility of a transferable limited-time use of the Easton brand name, but whether it's worth what BPS would want for it, in terms of added marketability and value to a buyer. . .

Or even the ability to mark product "formerly Easton" for a year after sale. . .

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Any rumors on who's going after Easton?

Sher-Wood? Warrior?

Bobby Ryan be wearing a Sher-Wood e700 in 2014?

If Shooter is correct it's a private equity firm, so not a current player in the industry. That is assuming I'm interpreting his post correctly.

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Without knowing what's in the licensing agreement, we don't know whether they can use the brand.

And I think it would all depend on the price.

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Makes sense. We've seen a whole lot of brand names, of defunct companies, used on products before. They'll be happy to get money out of the name one way or another.

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It will be interesting to see how this plays out. For guys my age, we all remember Gretzky, Hull, Modano, Yzerman, Leetch, and Roenick using the Easton ALs and gloves. For the generation after us, they were hooked on the original Synergys and Stealth models. I would think it's safe to say that Easton is a very recognizable name in the sport with a good lineage of products.

I am wondering if who ever buys them will be allowed license to the brand. BPS is public traded and the right price for a licensing deal might make sense on paper... But assuming BPS quits the licensing agreement at their first opportunity... will people respond to a Mizuno Stealth stick or Made Up New Brand Mako skates and e700 helmet?

It would be sad to see them dissapear, but the marketing / business nerd inside of me loves see how these scenarios play out.

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Pretty sure that the Stealth and Mako "sub brands" were "ball" lines before hockey. Those would probably go to BPS as well.

Talk to any softball nerd and say "first batch synergy". A softball halfie will ensue :-)

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No doubt, and same could be said for the many Synergy OPS whose blades came flying out of the shaft...

I remember getting the OG Gold Grip Synergy stick for free for buying Z-Air skates in the offseason. Changed me forever! Loved that stick!

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The naming and future of Easton hockey is interesting. In everything that came from Easton to retailers regarding this, nothing was mentioned about the naming or licensing of the name, that came only from Bauer. As a matter of fact, this quote came from the president of Easton Hockey himself:

"Our strategy is, and will continue to be, to move Easton Hockey forward as a best-in-class hockey brand."

That leads me to believe, that they will continue to use the name because they speak of Easton Hockey as the brand and that it will continue to move forward under the pending sale.

It may not happen, but there are other ways to word such a statement if they had any inclination that Easton Hockey will not continue as a brand.

The official press release from Easton-Bell Sports mentions nothing of the naming at all, for either baseball or hockey.

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That's the point of the licensing agreement. Easton Hockey will continue as a brand for as long as EBS (or whatever the new name is) owns the hockey business. However, what is up in the air at this point is whether or not it will continue to be the brand name after the hockey business is sold.

I think people are over-emphasizing the importance of the Easton brand name somewhat. Think back to when Warrior came into the business. Their original sticks were simply Innovative's with a new name. Everyone knew that and those that liked Innovative simply bought the Warrior branded version because they knew it was the same product. If Easton hockey is bought and renamed something else it will be a very public transition, so while the brand name will be unfamiliar, everyone will know that the product being put out is still the same product. So most of the people that love the V9 or the V9E or the Mako will continue to buy that product regardless of the brand name, as long as the new owner doesn't drastically change the quality. This isn't trying to build a brand from scratch with an unknown product, this is re-branding a known quantity of a product, and a product that a lot of people really like. Those are two very different scenarios

That's not to say the brand name isn't important. But if you're an Easton lover that uses a V9E out there and the buyer re-brands it Brand X, are you going to switch the stick you use to another company or are you going to use the Brand X V9E?

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That quote was in regards to the sale of Easton Hockey, I may not have made that clear. In other words, basically saying "we're in the process of the sale in order to allow Easton Hockey brand to move forward."

Again, its all wording and maybe its wrong, its just the take I get is that they want to move the name forward. There are other ways to word it if you were selling it off and the name wouldnt go with it.

But who knows. I certainly dont for sure.

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According to my rep - Easton Hockey - will continue and go forward.

There will be different owners however the brand name Easton will continue.

I'd guess part of the purchase from a private firm includes licensing or ownership of the Easton Hockey name.

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That's the point of the licensing agreement. Easton Hockey will continue as a brand for as long as EBS (or whatever the new name is) owns the hockey business. However, what is up in the air at this point is whether or not it will continue to be the brand name after the hockey business is sold.

I think people are over-emphasizing the importance of the Easton brand name somewhat. Think back to when Warrior came into the business. Their original sticks were simply Innovative's with a new name. Everyone knew that and those that liked Innovative simply bought the Warrior branded version because they knew it was the same product. If Easton hockey is bought and renamed something else it will be a very public transition, so while the brand name will be unfamiliar, everyone will know that the product being put out is still the same product. So most of the people that love the V9 or the V9E or the Mako will continue to buy that product regardless of the brand name, as long as the new owner doesn't drastically change the quality. This isn't trying to build a brand from scratch with an unknown product, this is re-branding a known quantity of a product, and a product that a lot of people really like. Those are two very different scenarios

That's not to say the brand name isn't important. But if you're an Easton lover that uses a V9E out there and the buyer re-brands it Brand X, are you going to switch the stick you use to another company or are you going to use the Brand X V9E?

There's a reason large companies spend millions and billions on developing brand identity and marketing different brands to different people. There's a reason Coke purchased VitaminWater in addition to PowerAde and they bought Zico instead developing Coca Cola coconut water. There's a reason that Swatch owns Omega, Tissot, Hamilton, Rado, and Longines. There's a reason that Bauer outsold Nike hockey and why Adidas will PROBABLY phase out Reebok hockey in favor of CCM.

Because of the lax and hockey crossover, Warrior is a stronger and more well know brand than Innovative was. Innovative had a nice niche, like Graf, but they don't get the brand recognition that Warrior has. Being part of the NB/Warrior umbrella also gave Warrior Hockey deep products to up their distribution channel and marketing budget. Warrior sticks are in every hockey shop and I know that no where near me carried Innovative. Warrior ads are all over USA Hockey magazine and I can't ever remember seeing one for Innovative. Warrior may have early successes through Innovative and used MIA as a crutch, but they have built a brand people in hockey recognize.

Easton is known as an innovator. Successes like Synergy, Aluminum, Air Gloves, and e700 helmets are valuable because one brand developed them all and established an identity. If the licensing deal with BPS runs out and Bauer is able to nix the use of Easton in hockey, you can't argue it would be business as usual or that they wouldn't be effected. Yes, people will still buy a Brand X Synergy for a short period... but if they strike out developing their own brand, they will be doomed.

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