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IPO bully-off for Bauer
Posted on Monday, 31 January 2011 15:25
Canadian ice hockey equipment manufacturer Bauer Performance Sports is putting its best boot forward, filing a preliminary prospectus to hold a domestic initial public offering in a bid to boost its market presence.
Details of the proposed listing are sketchy at best as the process is still in the early stages but a source with knowledge of the matter told Reuters that it could be worth at least CAD 75.00 million (USD 74.87 million).
This person added that a 20.0 per cent stake is earmarked for sale in a move which would value the manufacturer at about CAD 375.00 million.
Founded in Ontario in 1927 and registered in British Columbia, the group claims to be the world’s leading designer, maker and marketer of performance sports equipment and related apparel under the brands Bauer Hockey, Mission Roller Hockey and Maverik Lacrosse.
Over the last four years Bauer, which is headquartered in the US state of New Hampshire, has boosted its market share in the ice hockey equipment market from around 28.0 per cent in the financial year ended 31st May 2006 to about 45.0 per cent in FY 2010.
Net revenues have nearly doubled over the four-year period to USD 257.40 million in FY 2010 from USD 146.60 million in FY 2006, representing an annual growth rate of 18.3 per cent.
However, Bauer is not taking its position for granted and is in the middle of launching products based on new technologies which should drive further growth in the ice – and roller – hockey sector.
According to the prospectus, ice hockey is a team sport played in more than 68 countries by more than an estimated six million people. The most significant markets for ice hockey are Canada, the US and a number of European countries, including Sweden, Finland, Germany, Austria and Russia.
Bauer said it has estimated the global ice hockey equipment sector, which excludes related apparel, such as performance clothing, team jersey and socks, totalled around USD 555.00 million in 2010 and is growing at an annual rate of around 1.0 per cent to 2.0 per cent.
The related clothing market – including performance apparel, team jersey and socks – is around USD 300.00 million in size and is increasing at an annual rate which is expected to exceed that of the ice hockey equipment market.
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