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Wolfpack_1986

***OFFICIAL*** Bauer purchasing Mission-Itech

By Wolfpack_1986, in Ice Hockey Equipment

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Johnny Law    0

Johnny Law
Posted

I would love to know the purchase price for the simple fact that it would be interesting to know how they financed the deal in the current credit climate. Maybe PEG or no credit at all.

Regardless, when combined with their separation from Nike I would imagine it puts them at a disadvantage in terms of pile of cash in relation to RBK/CCM though I could be totally wrong.

Clearly the benefit is that they are now one stop shopping for nearly every hockey product imaginable. In a weird way it puts Easton Hockey in an interesting position.

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sebseb    0

sebseb
Posted

i read here (on the forum in general) that u guys really like the pitch steel and the lightspeed holder, so i guess now you'll get the pitch steel in the lightspeed holder and there won't be any reason to buy the stepskate blades. always look at the full half of the glass ;)

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shooter27    116

shooter27
Posted

There are plenty of ways for them to get debt financing even in todays market. That being said, I can assure you any financing they did will come with very significant covenants and very limited leverage ratios. Given that the price for Bauer itself was ~$200 million I would guess that this deal costs less than that. If you assume that the maximum they could finance was 50% of the deal (which is probably the absolute max in this type of market) then you're only talking about $50-75 million of financing and definitely less than $100 million. Those size deals are still getting done on a daily basis as they do not require syndication of the debt to the public markets. The deals that are having / have had problems are the deals where people are financing a $1billion or more and the financing terms and conditions have very low coverage ratios with limited covenants. Banks and hedge funds can't absorb that size of a piece of debt so they have to syndicate it to the public markets and that is where things really get hairy for them.

Also, the Kohlberg firm that provided equity in the original Bauer buyout has roughly $1 billion under management. All signs point to them having plenty of dry powder in their funds so writing a pure equity check to cover this acquisition is not out of the question. (Keep in mind that this is not money on Bauer's Balance Sheet, but can easily be invested from Kohlberg into Bauer)

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Fletch    219

Fletch
Posted
That is up there....I still have one...I have a yellow one as well...MY biggest flop....Plastic DNA Strands....

Yikes.....He950's.....I remember those days.

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CapsFan    5

CapsFan
Posted
Here's the first set of questions between me and Steve Jones, who is the Director of Communication at Bauer -

How did the two parties meet/decide to talk about consolidation?

Unfortunately, I can not comment on specifics of how the deal came to fruition, but I can say that it was something that has been in the works for quite some time. Obviously the acquisition creates an exciting opportunity for Bauer Hockey and strengthens our overall position in the market by adding Mission-ITECH’s product leadership in key categories such as goal, facial protection, protective apparel and roller hockey. Clearly those are all categories that Bauer has not excelled at in the past and this acquisition will only help us provide a comprehensive – and proven – product line across all categories.

What was the price?

As Bauer and Mission-ITECH are two private companies, the purchase price is not disclosed.

I would love to know the purchase price for the simple fact that it would be interesting to know how they financed the deal in the current credit climate. Maybe PEG or no credit at all.

Regardless, when combined with their separation from Nike I would imagine it puts them at a disadvantage in terms of pile of cash in relation to RBK/CCM though I could be totally wrong.

Clearly the benefit is that they are now one stop shopping for nearly every hockey product imaginable. In a weird way it puts Easton Hockey in an interesting position.

I would like to know more about how the deal came about. I know Steve said he couldn't talk about it, but then he went on to say that they had been talking for quite some time. Well, it wasn't too long ago that Bauer was NBH, so it looks like Bauer was purchased and then they went right into talks with Mission-Itech.

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d_bruno    0

d_bruno
Posted

hey can someone bring light to vaughn buying eagle and im also hearing sherwood bought TPS. if so this is all crazy. and JR do u have any insight to what these companies are planning on doing with the new purchases.

thanks

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CapsFan    5

CapsFan
Posted
The two parties got together when the shoe was on the other foot. I had mentioned that earlier in the thread.

My bad. I don't read between the lines well.

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JR Boucicaut    3789

JR Boucicaut
Posted
Dude seriously. READ! Sher-wood did not buy TPS. Its been said about 10 million times in this thread.

they havent yet...

They won't.

Nobody is going to touch that debt with a 10' pole.

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mattzilla    0

mattzilla
Posted
That is up there....I still have one...I have a yellow one as well...MY biggest flop....Plastic DNA Strands....

Personally I loved my old D3's :D

I loved mine as well. If I could ever find a new pair in 11, i would be all over it.

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Jbird    0

Jbird
Posted
Good luck to the Mission boys, there are still a lot of good ones left... I hope it works out for you guys!

Much appreciated.

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Justin 1933    134

Justin 1933
Posted
That is up there....I still have one...I have a yellow one as well...MY biggest flop....Plastic DNA Strands....

Personally I loved my old D3's :D

I loved mine as well. If I could ever find a new pair in 11, i would be all over it.

Stupid Hockey Monkey not having the right size in random closeouts of old skates.... :unsure:

Those ones were actually good..The first year of DNA worked awesome...It was the plastic ones that sucked....

Good luck to the Mission boys, there are still a lot of good ones left... I hope it works out for you guys!

Much appreciated.

JBird.....Come to California and I would hire you in a second....Want to work on Golf products?

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Jbird    0

Jbird
Posted
JBird.....Come to California and I would hire you in a second....Want to work on Golf products?

Nice. You guys did a great job on the protective last yr...

Hmmmm.........CA sounds tempting. Not sure if the Mrs. would agree though.

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VakarLajos    5

VakarLajos
Posted
JBird.....Come to California and I would hire you in a second....Want to work on Golf products?

Nice. You guys did a great job on the protective last yr...

Hmmmm.........CA sounds tempting. Not sure if the Mrs. would agree though.

Worked for Chris Pronger. hehe

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Gwyren    0

Gwyren
Posted
Just bring her our here in the middle of winter..she would be sold....

Agreed, if all the people and smog did not scare her off.

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