Bauer acquires Cascade

[JR Boucicaut 3804]

Here's the presser - tune of $64M

http://www.reuters.c...2012 MW20120613

[AIREAYE 248]

Huge news here, I wonder how long this has been in the works for.

In my opinion, I believe this acquisition has more to do with Bauer wanting to expand in the LAX market as opposed to just acquire the M11 lineup when Bauer themselves have a full line of hockey helmets already and continually devote a large amount of resources towards helmet development.

The Acquisition of Cascade by BAUER expands BAUER's presence in the lacrosse equipment

industry, adding the industry's premier line of helmets to the Maverik

family of sticks, heads, shafts and protective gear.

I find the following bit particularly interesting

BAUER also plans to continue Cascade's custom manufacturing capabilities for

lacrosse and hockey helmets and expects to expand manufacturing at its

facility to include BAUER-branded hockey helmets.

Maybe we'll see custom helmets available in the future? Something like MyBauerHead ? One can hope.

JR, what's your opinion on this?

[JR Boucicaut 3804]

In my opinion, I believe this acquisition has more to do with Bauer wanting to expand in the LAX market as opposed to just acquire well as eliminate the M11 lineup when Bauer themselves have a full line of hockey helmets already and continually devote a large amount of resources towards helmet development.

I can't see how they keep the M11; it is the RE-AKT's direct competition - their literature explicitly mention concussions; the other helmets on the market skirt around it and focus more on fit. I'm seeing this as another Mission-Itech situation here; keep the new categories; scrap what affects your current products.

[Chadd 916]

I can't see how they keep the M11; it is the RE-AKT's direct competition - their literature explicitly mention concussions; the other helmets on the market skirt around it and focus more on fit. I'm seeing this as another Mission-Itech situation here; keep the new categories; scrap what affects your current products.

I agree completely. I don't see Cascade hockey being around at this time next year, this is about selling more lacrosse gear and being a major player in that market.

[215BroadStBullies610 435]

I can imagine how sick their lax buckets will be haha. That's the way of the business world today: M&As.

[romdj 26]

It's interesting that they label that as Bauer acquiring cascade and not Nike...

[Monty22 833]

It's interesting that they label that as Bauer acquiring cascade and not Nike...

Why? That's what happened. Nike had nothing to do with the deal.

[cgrays12 0]

Im going to assume romdj that you aren't aware that Nike sold Bauer Hockey a few years ago and no longer have ANY hand in hockey equipment.

One thing Ive noticed with the M11 helmet is alot of team customizations and team orders, maybe Bauer wants to pick up on those? Alot of youth teams in my area seem to have team color M11s, and Ive seen a few College and HS teams doing the same.

[Axxion89 32]

I can't see how they keep the M11; it is the RE-AKT's direct competition - their literature explicitly mention concussions; the other helmets on the market skirt around it and focus more on fit. I'm seeing this as another Mission-Itech situation here; keep the new categories; scrap what affects your current products.

True but I can see Bauer keeping the M11 helmet because of the brand recognition. Even if the M11 cannabalizes Bauer sales, so long as Bauer's analysis show that they would accrue more overall sales having both helmets on the market rather than eliminating it and going only with one, I can see Bauer keeping the M11 around for a while. If the opposite is true, then the M11 will be gone. However, I do think Bauer will keep the M11 Pro at least in order to benefit from its brand image as a concussion designed to deal with concussions.

[hunterphfr 12]

Bauer has supposedly been looking to break into the lacrosse market for a while. Buying Cascade cuts out a lot of time and money being spent on R&D. If Bauer killed the Mission Intake/NME a very popular (hockey and rodeo) helmet line, I don't think the M11 will be around for long. Especially since the RE-AKT has pushed the cost of a helmet up to $200 and with a different spin on how it will protect a player from impacts to the head.

Lacrosse is supposed to be seeing a tremendous surge in popularity. When I moved to the Tampa area 12 years ago lacrosse was non-existant. It is now flourishing, with youth leagues, mens leagues and is even making it's way into the school system. My last trip back to Ontario, box and field lacrosse were more popular than they ever were while I was growing up. I'm sure Bauer wants in on the action.

[AIREAYE 248]

I can't see how they keep the M11; it is the RE-AKT's direct competition - their literature explicitly mention concussions; the other helmets on the market skirt around it and focus more on fit. I'm seeing this as another Mission-Itech situation here; keep the new categories; scrap what affects your current products.

Any chance that they keep the M11 tech and/or research? It doesn't make sense to me that it's simply an elimination of competition when you can benefit from it in other assets. However I personally don't see much of a technological asset anyhow; but I digress...

hunter, they're already in the LAX market with Maverick.

[DarkStar50 679]

hmmm, where is the $$ coming from?

[HockeySavants 5]

I approve, I want some Bauer Lax gear lol

[Chadd 916]

hmmm, where is the $$ coming from?

Kohlberg & Co.

[romdj 26]

Im going to assume romdj that you aren't aware that Nike sold Bauer Hockey a few years ago and no longer have ANY hand in hockey equipment.

One thing Ive noticed with the M11 helmet is alot of team customizations and team orders, maybe Bauer wants to pick up on those? Alot of youth teams in my area seem to have team color M11s, and Ive seen a few College and HS teams doing the same.

Thank you cgrays12.ouch that's embarassing, I had no clue NBH only lasted a few years...

But yes are they going to keep maverik lacrosse and cascade as separate entities..I'd be interested to see.

[DarkStar50 679]

Kohlberg & Co.

Are you sure about that?

[steve66 45]

Are you sure about that?

Sounds like you know otherwise?

[Chadd 916]

I did a quick search and didn't see any stories about major new investors, so that would likely narrow it down to profits within the company or the private equity firm that funded the purchase from Nike. Their third quarter report also only shows about $4m in cash.

[JR Boucicaut 3804]

Any chance that they keep the M11 tech and/or research? It doesn't make sense to me that it's simply an elimination of competition when you can benefit from it in other assets. However I personally don't see much of a technological asset anyhow; but I digress...

If Bauer killed the Mission Intake/NME a very popular (hockey and rodeo) helmet line, I don't think the M11 will be around for long.

Sit back and analyze what was used and what was scrapped from the MIH deal.

Bauer needed a bigger presence in facial, goal, goal masks and underapparel, which they got with Itech. They left Mission Roller to operate as a separate entity. They scrapped everything Mission ice (which had some really good helmet and skate tech) except for a youth helmet which they didn't have at the time.

They see an opportunity to strengthen themselves in another category (Maverik does not make a helmet at all, the question is does the helmet stay Cascade or does it become Maverik - history will tell us it's the latter, as Itech had mindshare in facial and underapparel and it became Bauer) and get a domestic helmet assembly facility (Bauer helmets used to be assembled in Canada; I believe at the moment, helmets are being shipped complete from China.)

They didn't sit there and say, "Wow, we REALLY like the M11. Let's buy it and put our name on it." They went and designed their own helmet; mothballing the M11 eliminates competition for that helmet and marketing campaign and means there's more room on a retailer's shelf for Bauer.

[DarkStar50 679]

Sounds like you know otherwise?

No, I don't know otherwise. I'm just trying to put together some pieces of a puzzle. If Chadd had confirmation on his post, I just wanted to be sure it was accurate.

I did a quick search and didn't see any stories about major new investors, so that would likely narrow it down to profits within the company or the private equity firm that funded the purchase from Nike. Their third quarter report also only shows about $4m in cash.

Thanks for doing the research. Like I said, just trying to figure some things out from my end.

JR, your post left no room to read between the lines!

[JR Boucicaut 3804]

True but I can see Bauer keeping the M11 helmet because of the brand recognition. Even if the M11 cannabalizes Bauer sales, so long as Bauer's analysis show that they would accrue more overall sales having both helmets on the market rather than eliminating it and going only with one, I can see Bauer keeping the M11 around for a while. If the opposite is true, then the M11 will be gone. However, I do think Bauer will keep the M11 Pro at least in order to benefit from its brand image as a concussion designed to deal with concussions.

Why would you market a DIFFERENT brand?

You don't want to eat your own lunch. Keeping the M11 can also be construed in a consumer's eyes as saying your branded products were inferior and had to "buy yourself" a better product.

At NHL, Mission had as many, if not more guys in the Intake than Cascade has in the M11. And none of those features have carried over into a Bauer helmet.

JR, your post left no room to read between the lines!

Oh, I'm sure someone will ask me for clarification, or take it out of context. Goes with the territory.

Do note that these are my thoughts. Just looking back at previous dealings - of course all of this could change.

[Chadd 916]

At NHL, Mission had as many, if not more guys in the Intake than Cascade has in the M11. And none of those features have carried over into a Bauer helmet.

Mission had easily ten times the market penetration of Cascade in the NHL.

[raganblink 82]

They see an opportunity to strengthen themselves in another category (Maverik does not make a helmet at all, the question is does the helmet stay Cascade or does it become Maverik - history will tell us it's the latter, as Itech had mindshare in facial and underapparel and it became Bauer) and get a domestic helmet assembly facility (Bauer helmets used to be assembled in Canada; I believe at the moment, helmets are being shipped complete from China.)

This. Cascade does deliver on their 48 hour turn around on custom helmets (lax and hockey), with Bauer you have to order 12 and it takes 3 months. Advantage: Cascade. Wont be surprised if we atleast see custom helmet orders get knocked down to a month, and wouldn't be shocked to see a MyBauerHelmet as mentioned earlier.

That and lax is the fastest growing sport in NA, Cascade has a stranglehold on the helmet aspect of the game. A cascade/maverick combination IMHO overtakes Warrior as the number 1 company in lax. Lets face it, Maverick is a distant third in the lax world, now it will become number 1.

[Gummer12 134]

Not gonna happen Blink. M11 is gonna Vanish from the ice hockey world. Not one aspect of Cascade is going to stick around on this side. It's Purely elimination of competition. Not absorption.

[JR Boucicaut 3804]

That and lax is the fastest growing sport in NA, Cascade has a stranglehold on the helmet aspect of the game. A cascade/maverick combination IMHO overtakes Warrior as the number 1 company in lax. Lets face it, Maverick is a distant third in the lax world, now it will become number 1.

I dunno - with Warrior/Brine/NB you have two distinct lines. It gets them closer but I don't know about #1.

Anyway - spoke to Steve Jones from Bauer this morning; we will do a Q&A with them on this deal. So, please, ask questions; I will redirect to Steve who will answer them and we'll compile it all.