shooter27 116 Report post Posted June 22, 2012 The question is does it become Maverik or does it stay Cascade...From a strategy standpoint one would think they keep the Cascade name since it's such a dominant name in the world of lacrosse helmets. There is a lot of brand equity in the Cascade name on the lacrosse side. Share this post Link to post Share on other sites
JR Boucicaut 3760 Report post Posted June 22, 2012 From a strategy standpoint one would think they keep the Cascade name since it's such a dominant name in the world of lacrosse helmets. There is a lot of brand equity in the Cascade name on the lacrosse side.Agreed. Share this post Link to post Share on other sites
hunterphfr 12 Report post Posted June 23, 2012 It's about $$$$$. It's always about $$$$$$.It's like when Chrysler bought AMC. They had to buy all of AMC. They had no interest in the Gremlin, Pacer or Renault lines. Chrysler already made cars. They wanted Jeep. AMC was in serious financial trouble. Chrysler bought AMC and the AMC & Renault lines were discontinued, but Jeep has been one of Chrysler's strongest selling brands."Kohlberg & Company is a private equity firm that focuses on leveraged buyout transactions. The firm, focuses on companies facing operational or financial challenges." Yes it's from Wikipedia but it's pretty accurate. They're like Bain Capital. They aren't here because they have a love for the sport or they want to protect the youth of America. They're here to sell $800 skates, $250 sticks and $200 helmets. Remember in the movie Wall Street when Bud Fox is trying to convince Gordon Gecko that the airline his father worked for could be profitable and to think about the people. Gecko more or less says sell the planes, real estate and assets, lay off the workers and raid the pension fund. Gecko ran a private equity firm.They wanted to round out their lacrosse line with a helmet. They already have a top of the line hockey helmet that sells for $80 more than the company's they just aquired. The M11 only hurts their bottom line. It just doesn't make business sense to introduce it into the Bauer line and business is what Kohlberg is all about. Share this post Link to post Share on other sites
AIREAYE 248 Report post Posted June 23, 2012 Hmm well there now is a pricepoint gap between the 7500 and Re-Akt that another helmet could fill... Share this post Link to post Share on other sites
JR Boucicaut 3760 Report post Posted June 23, 2012 Hmm well there now is a pricepoint gap between the 7500 and Re-Akt that another helmet could fill...8500 (in Canada), 9900. Share this post Link to post Share on other sites
hunterphfr 12 Report post Posted June 23, 2012 Hmm well there now is a pricepoint gap between the 7500 and Re-Akt that another helmet could fill...Yes but price point isn't all that matters. Why would I buy a Re-Akt for $80 more when I can get a helmet that is "concussion proof" for nearly 1/2 the price. Just doesn't make $$$$& sense for Bauer to kep the M11 around and $$$$ is all that matters in this merger. Share this post Link to post Share on other sites
kovalchuk71 212 Report post Posted June 23, 2012 Who ever said it was "concussion proof"? That's not true in the least bit. No helmet is. Share this post Link to post Share on other sites
DarkStar50 679 Report post Posted June 24, 2012 Somebody was drinking the Kool-aid. Agreed, no helmet is concussion proof. Cascade should have known better than to try and make that claim, even if only subliminally. Share this post Link to post Share on other sites
JR Boucicaut 3760 Report post Posted June 24, 2012 Who ever said it was "concussion proof"? That's not true in the least bit. No helmet is.He put it in quotation marks for a reason...no need to jump on him.Somebody was drinking the Kool-aid. Agreed, no helmet is concussion proof. Cascade should have known better than to try and make that claim, even if only subliminally.As I put it in my previous post in this thread, these two helmets have been the ones that have mentioned concussions, or advanced protection to combat them as a feature/selling point, so, these helmets are direct competitors.But, they did make that claim, and perception is reality, and because of it, there are a LOT of parents who feel the M11 is "concussion-proof." Share this post Link to post Share on other sites
hunterphfr 12 Report post Posted June 24, 2012 Who ever said it was "concussion proof"? That's not true in the least bit. No helmet is.Cascade's marketing department did, until they were forced to change their marketing program in the fall of 2010. The belief that it provides superior concussion protection over any other helmet is a belief that is still held by many. It's a belief you can see on forums such as this one, in rinks and pro shops everywhere. I've seen entire teams mandate the use of the M11 helmet to protect the players in the organization. They gave them a year to comply. What if the M11 helmet didn't fit a child properly? Share this post Link to post Share on other sites
JR Boucicaut 3760 Report post Posted June 26, 2012 I just finished up a conference call with Mark and Mary-Kay Messier.They stress that Bauer is committed long-term to the M11 and M11 Pro helmet and the Cascade technology, and that it will be business as usual at Cascade. They feel that they are offering a different approach to the concussion issue and that the thought by all is that it is needed in the marketplace. Share this post Link to post Share on other sites
DarkStar50 679 Report post Posted June 27, 2012 Can we get that in writing? JK............ Share this post Link to post Share on other sites
oldtrainerguy28 478 Report post Posted June 27, 2012 Sure find it interesting that Bauer will do so when one helmet is very advanced in thinking with the Re-Act helmet and the fact it concentrates on rotational which roughly 80 or so % of hockey concussions and the M11 is main focus on linear impacts wich is roughly 20 % of concussions? I am banking that the Re-Act gets a little more funding. Now if they were to marry the 2 and do something there then I could understand the logic. But to leave Cascade Hockey Helmets alone and let it continue as is does not make any sense to me? Share this post Link to post Share on other sites
shooter27 116 Report post Posted June 27, 2012 It could make sense from a financial standpoint depending on how profitable Cascade's hockey helmets are relative to their lacrosse stuff and relative to Bauer's helmets. If the hockey side is profitable and the margins are solid then Bauer can continue to sell the current M11 and M11 pro, reap the incremental profit and not necessarily have to invest in that line to expand it. Plus, since its already in the market, its not simply introducing a new product to compete with a current product, its continuing to sell a niche product that seems to have a fairly ardent (but small) following so the cannibalization would likely be minimal.If they truly are going to keep the Cascade helmets around then my guess is one of two things happened: either the Cascade hockey helmet is profitable and allowing it to continue to run will provide Bauer with incremental profit; or to get the deal done Bauer had to agree to keep the Cascade hockey line around. That happens fairly regularly with businesses that people are emotionally invested in (think longstanding family businesses) that are being sold to competitors and the sellers dont want to see their years of blood, sweat, and tears simply gobbled up. So they make continuation of the brand a requirement for doing the deal. If the deal is profitable enough then the buyer will agree to it.On the surface, it doesn't appear to make competitive sense, but if the profits are there and it doesn't require significant go-forward investment from Bauer, it could make complete sense. Share this post Link to post Share on other sites
danno25nh 3 Report post Posted June 27, 2012 Sure find it interesting that Bauer will do so when one helmet is very advanced in thinking with the Re-Act helmet and the fact it concentrates on rotational which roughly 80 or so % of hockey concussions and the M11 is main focus on linear impacts wich is roughly 20 % of concussions? I am banking that the Re-Act gets a little more funding. Now if they were to marry the 2 and do something there then I could understand the logic. But to leave Cascade Hockey Helmets alone and let it continue as is does not make any sense to me?Where are the 80/20 numbers coming from? I've read a number of studies from reputable and peer reviewed papers and have yet to see such a number. Everyone agrees that rotational forces cause concussion but no where in the papers from Mayo Clinic or other equally reputable sources have I seen 80% of hockey concussions are rotational in nature. Share this post Link to post Share on other sites
oldtrainerguy28 478 Report post Posted June 28, 2012 Where are the 80/20 numbers coming from? I've read a number of studies from reputable and peer reviewed papers and have yet to see such a number. Everyone agrees that rotational forces cause concussion but no where in the papers from Mayo Clinic or other equally reputable sources have I seen 80% of hockey concussions are rotational in nature.They were numbers that were "rough estimates" from University of Ottawa person doing the studies on rotational impact. Also does some indapentant studies for all companies on the helmets. Sorry I should have said thy were "rough estimates" and not factual amounts. However reports he has seen are in this area. Share this post Link to post Share on other sites
shotty 7 Report post Posted June 28, 2012 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.you dont spent $64 million dollars to tap into the custom helmet market.when bauer went public, they explicitly said that they were interested in growing in the lacrosse industry, thats what this is, and in the meantime, they are eliminating their competition in the concussion centric helmet (for lack of a better term) battle. Share this post Link to post Share on other sites
