Private equity firm Altor announced Wednesday that it has agreed to acquire a majority stake in the 125-year-old iconic Canadian brand CCM Hockey, which specializes in manufacturing sports equipment and apparel.
Private equity firms are increasingly turning their attention to the booming sports sector, where companies are partnering with popular leagues that attract large crowds and maintain a loyal customer base.
In August, NFL owners allowed some private equity firms to buy up to 10 percent stakes in any team, joining other major leagues such as the NBA and MLB that have allowed limited investments from funds.
It sets up the sports sector, including sporting goods companies, for more debt and interest from investment firms.
CCM Hockey, based in Montreal, was founded in 1899. Its products are used by star hockey players such as Auston Matthews, Sidney Crosby and Connor McDavid.
Reebok bought CCM in 2004 and was then itself bought by Adidas in 2006. Later in 2017, the German company struck a $110 million deal with Birch Hill Equity Partners to sell CCM.
Today it operates in over 40 countries and represents many players in the NHL and the Professional Women’s Hockey League.
The deal with Stockholm, Sweden-based Altor, an investor in several consumer brands, will focus on increasing CCM’s growth in both current and new segments, products and markets, the companies said.
The transaction is expected to close by the end of the year.
The CCM deal comes after the owner of rival Bauer Hockey announced earlier this week that Toronto-based affiliates of Fairfax Financial Holdings would acquire a majority stake in its overall business.
Peak Achievement Athletics did not disclose the value of the deal, but said the transaction gives Fairfax an equity stake previously owned by Montreal asset management company Sagard Holdings.
Fairfax and Sagard took Bauer out of bankruptcy in 2017 and paid $575 million for the sporting goods manufacturer.
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