PR Newswire (Feb. 28, 2017) - Performance Sports Group Ltd., announced the completion of the sale of substantially all of its assets and its North American subsidiaries, including its European and global operations, to an acquisition vehicle co-owned by affiliates of Sagard Holdings Inc. and Fairfax Financial Holdings Limited. The new, privately held company also announced Harlan Kent, who previously served as the Chief Executive Officer of PSG, will continue to lead the business on an interim basis during the search for a permanent CEO.
The new company will continue to develop and manufacture ice hockey, roller hockey, lacrosse, baseball and softball equipment and related apparel. The products will be marketed under the Bauer, Mission, Maverik, Cascade and Easton brand names and will be distributed by sales reps and independent distributors worldwide.
The sale completes the bankruptcy proceedings by PSG and its North American subsidiaries that began on Oct. 31, 2016, in the United States and Canada. The sale was approved Feb. 6.
Paul Desmarais III, the Executive Chairman of Sagard Holdings, will serve as chairman of the new company as it transitions to new leadership.
"We are excited to build upon the achievements of some of the most innovative and iconic brands in sports," Desmarais said. "In partnership with Fairfax Financial, we look forward to growing a strong business that is committed to serving a loyal base of customers for the long term. We thank all of Performance Sports Group's people, and especially Harlan Kent, for effectively managing the business through the restructuring process and helping to position it for future success."
Paul Rivett, President of Fairfax Financial, said: "The business is founded upon the strong pillars of its portfolio of industry-leading brands, strong customer relationships, and dedicated employees. We will work with Sagard Holdings and the management team to continue innovating and delivering industry-leading products to consumers around the world. We believe that the business has a very bright future and we are excited to help guide the company for many years to come."
Kent joined PSG as the CEO and a member of its Board of Directors on June 20, 2016. Former CEO Kevin Davis and PSG had parted ways after eight years last March. After the closing of the sale, Kent and three other members of the board resigned.
"During the restructuring process, our team worked very hard to continue to provide outstanding products and service to our customers and to be valued partners to our vendors," Kent said. "I am grateful for the hard work and dedication of my colleagues and for the continued support of our customers and vendors. We look forward to working with the new owners to transition the business to its next successful chapter."
Bernard McDonell, Chairman of the Board of PSG, said: "On behalf of the board, we would like to thank the retiring directors, Harlan, and all the Company's employees for their contributions to bringing this sale to completion. We wish them all the best in their future endeavors."
Upon consummation of the sale, PSG will no longer exist as an operating business and will instead, along with its professional advisors, focus on the completion of its U.S. and Canadian bankruptcy proceedings. This entails, among other things, reconciling claims against the bankruptcy estates and developing a distribution strategy for the sale proceeds in the U.S. and Canadian proceedings, through a liquidating plan or otherwise. Further information will be provided within the context of the Canadian and U.S. court proceedings.