Nike looking to sell Bauer

[DarkStar50 679]

"The Company expects the exploration process and any potential sale that maximizes Nike Bauer Hockey's value to Nike will be completed within the current fiscal year."

For the record, the fiscal year for Nike ends May 31, 2008.

Like them or not, Nike has been beneficial to hockey.

It will take boatloads of moolah to buy NBH. Nike will not be running a firesale to get rid of NBH. Just how deep are Warrior's pockets? I do not know. The financial world is not in a very lending mood at the moment.

[Gummer12 134]

Tomorrow's payday.

same here.. but I'm looking at some sticks (NBH Nontheless) in the sell section.. But hell, if it'll bring back the Bauer name, I'll chip in $20 lol

Someone can buy the company and go back to the Bauer name.

I understand that. But I was curious if the original owners (i.e. at the time Nike took over), if they're still within the company, can break away and purchase the company back? I would think that they can, barring they have the $, and Nike didn't somehow sneak in a 'No Competition' clause or something.

(Sorry if this sounds confusing, I'm already in the sauce, and watchin OTT/WAS game)

[chikinpotpie 137]

That would be so great. A company owned by hundreds of people that can't decide whether to produce a Sackic of Forsberg clone.

[RadioGaGa 162]

Mission/Itech/Bauer?

Is that realistic?

[DarkStar50 679]

No, Easton is!

[bobovski 1]

That would be so great. A company owned by hundreds of people that can't decide whether to produce a Sackic of Forsberg clone.

<sarcasm> Well, at least we could all agree on the color of our skates. </sarcasm>

Edit: Added brackets 'cause it's hard to tell in the interwebs.

[RadioGaGa 162]

No, Easton is!

They are the last major who never paired up with someone right...

Nike/Bauer

CCM/RBK

Mission/Itech

Warrior/MIA (not that they are really "majors")

EastonBauer has a decent ring to it!

[bobovski 1]

EastonBauer has a decent ring to it!

I don't know if I see that happening or not. If you look at all the other pies Easton's got fingers in, you see a trend: they keep their brand name and develop most every product possibly useful in the sport. Easton's model is to succeed by being pervasive, and I don't think that includes tacking on another well-known name.

[DarkStar50 679]

Its going to take deep pockets which they have. It would also help to have a foundation of knowledge about the industry which they have. There are other things within their business plan they would have to change, like keeping a depth of inventory for re-orders in season(if you run a LHS you know what I'm talking about), but Easton could step up and do this deal.

[Jarick 5]

Well I hope SOMEONE keeps Bauer running. More competition has definitely driven product innovation, even if prices go up as a result. But we're not buying wood sticks and leather skates anymore.

[Rustpot 1]

That would be so great. A company owned by hundreds of people that can't decide whether to produce a Sackic of Forsberg clone.

<sarcasm> Well, at least we could all agree on the color of our skates. </sarcasm>

Edit: Added brackets 'cause it's hard to tell in the interwebs.

We'd get a decent toe hook though. Think about how many pro-returns would flood the sell section.

[saber26 0]

if easton made this deal happen, they would own the hockey world

[DarkStar50 679]

An interesting note is that if another industry vendor is considering the purchase, they get to look at the books! Won't that be an eye-opener?

[G.M. 0]

I think Easton-Bell Sports is busy in trying to take their own company public, although, one never can prepare for this type of bomb to be dropped on you. I heard from my rep that they (Easton) have been looking towards purchasing Eagle as a way to get into the goalie side of things. Who knows how that would go, but, it makes a little sense; not much though. Eagle is hardly a player in the goalie business, let alone a company that has ever been able to consistently deliver product to retail.

As far as how deep Warrior's pockets are, well, being that they are owned by the 2nd largest shoe manufacturer in the world, I'd say deep.

Lastly, words from NBH CEO Mark Duggan.

"The Company expects the exploration process and any potential sale that maximizes Nike Bauer Hockey's value to Nike will be completed within the current fiscal year."

For the record, the fiscal year for Nike ends May 31, 2008.

Like them or not, Nike has been beneficial to hockey.

It will take boatloads of moolah to buy NBH. Nike will not be running a firesale to get rid of NBH. Just how deep are Warrior's pockets? I do not know. The financial world is not in a very lending mood at the moment.

[Quintin 16]

KorBauer anyone? ;D

[duch 0]

It would be great to get Bauer back as a separate brand altogether. I doubt Easton will make a bid on it. I'm thinking if they do, they may eliminate the Bauer name altogether in the long haul as I'm sure Nike had planned to do. You would have the technology from the aquisition of your competator, and you could use the ideas, and improve on your own product.( again as Nike did and finally made a decent skate) In that sense, it makes it viable to aquire the company, and eliminate a major player in your market and increase your share in it.

[Buzz_LightBeer 969]

I think Puma skates would look BADASS

[lb33knight 0]

Just to put things into perspective - Nike bought Canstar, Bauer and Cooper's parent company for $395 million. And that was 13 years ago, back in 1994. Before one piece sticks. Before Vapor skates. Before the internet explosion. I can guarantee you with the growth of the sport that $395 is WAY below what they would be looking to sell for now. Just think about how much their sales went up after they had a complete stanglehold on the skate market with the Bauer 5000 and Vapor 8 skates and all that followed. I wouldn't be surprised at all if Bauer's worth has doubled since that time. Think about all of the extra sales that happened solely because of the mainstream use of the internet.

Nike is used to seeing extremely high profit margins (do you really think that there is a lot of cost put into a $200 retail shoe made in a third world factory?) You don't have to spend a whole lot on technology for a running shoe like you do a skate. Nike has gotten tired of only getting back about $5 back for every $1 they invest in the hockey market whereas the may get back $100 for every $1 in other markets.

Do not expect the orginal Bauer to try to buy it back. It wouldn't make much sense to try to buy back your own company for twice as much as you sold it for. The theory of "buy low, sell high" doesn't quite work there.

I'm doing a little in depth investigating and I will post more as I have it.

[JR Boucicaut 3801]

Okay, time for me to step in.

I've been busy for the past few hours so I have been out of the loop. When I finally got to check my phone, I saw an email from the NBH Global Brand Communications Manager. Steve and I go way back - he was my first inside contact at NBH when I got into this business. I totally appreciated it that he thought of me in that way.

I gave him a call and we talked for about 25 minutes.

Some highlights -

While this is NBH's biggest year ever, and while it may not seem that way, but when you think globally, NBH is a SMALL piece of Nike Inc. They just don't see it fitting in their plan. lb33knight is right - the margins are just not there in hockey. I remember reading a few years ago that out of all of Nike's subbrands (Cole Haan/Hurley/Converse/NBH) NBH was the one dragging behind.

Also, Nike will look for the right fit - it's not going to be the case of whoever bids the highest.

NBH's plan as far as marketing and product remains unchanged. You will still see ONE95 and 9500 helmets and all of that stuff next year.

Even if a sale happens, the Nike/Bauer name will NOT be going away right away. I liken it to what H&B did when Pagotto's group bought TPS - you just can't kill off a brand name like that. They could license the name to the buyer.

If you have any other questions (not dumb ones like "Is Warrior going to buy NBH?) PM me or put it in this thread and I will address it.

[pmr149 0]

im sorta confused...so nike is selling bauer...but whoever buys them will still keep the nbh logo?

[Gummer12 134]

Will the Nike name go With the license? If so, will Nike have any say what the purchasing company does with the products that they are putting Nike's name on? I liken it to will Nike still hold Shares of the company?

[JR Boucicaut 3801]

im sorta confused...so nike is selling bauer...but whoever buys them will still keep the nbh logo?

Yes. At some point the Swoosh may be gone, but for the time being, it could be included if a sale is made.

Will the Nike name go With the license? If so, will Nike have any say what the purchasing company does with the products that they are putting Nike's name on? I liken it to will Nike still hold Shares of the company?

Maybe, no, no

Also, keep in mind that it's not like they are going to start over. The same people who are designing, selling and marketing the product will still be there.

[Gummer12 134]

10-4

I quote Lloyd Christmas....

'So you're saying there's a chance?!'

[Havok19 0]

Will you buy it?

hehe i had to put a silly question in!

[Gummer12 134]

I will.. got a couple Billion I could borrow?