Michael Traikos and Jacob Stoller discuss whether this was Connor McDavid's one-and-only chance to win the Stanley Cup or whether the best is yet to come. A Dallas Stars player wears Bauer skates. [https://thehockeynews.com/.image/c_fit,h_600,w_600/MjA3NjE2NDE2NzE3NzQ0MDUy/usatsi_21582804_168400847_lowres.jpg] A Dallas Stars player wears Bauer skates. When it comes to hockey equipment, CCM and Bauer are the dominant players in the game. Canadians have known these companies since they first laced up a pair of skates, and as a result, brand loyalty is exceptionally high. Remarkably, the two companies account for roughly 90 percent of all hockey skates sold worldwide. But despite their strong market positions, both companies are up for sale, according to Richard Dufour of La Presse [https://www.lapresse.ca/affaires/entreprises/2024-07-03/concurrents-jusque-sur-le-marche-des-capitaux/bauer-et-ccm-pourraient-avoir-de-nouveaux-proprietaires-cet-ete.php]. > The sale process led by the American investment bank Baird has reached an > advanced stage for CCM, a company headquartered in Montreal and for which > Birch Hill had paid $110 million in 2017. Only a handful of candidates are > left in the running. > > Similarly, Fairfax and Sagard are considering divesting themselves of Bauer, > whose activities are grouped under the name Peak Achievement with the assets > of Maverik, a lacrosse brand. - Richard Dufour in La Presse > [https://www.lapresse.ca/affaires/entreprises/2024-07-03/concurrents-jusque-sur-le-marche-des-capitaux/bauer-et-ccm-pourraient-avoir-de-nouveaux-proprietaires-cet-ete.php] > (translated from French) - CCM, founded in 1899, is said to be late in its sales process. It’s owned by Birch Hill, a Canadian private equity firm that bought the company from Adidas in 2017. Bauer was born in 1927 and is currently co-owned by Fairfax Financial Holdings and Sagard, an asset management group. Both companies have Toronto offices and also own Maverik Lacrosse. Bauer and Maverik are also for sale, both operating under the banner of Peak Achievement. So, what’s the story behind these iconic hockey brands being for sale, especially since they seem to have captured such a massive market share? According to La Presse, it isn’t complicated. Despite the PWHL's impressive debut and all the hype surrounding the recent Stanley Cup playoffs and their soaring TV ratings, one truth is weighing CCM and Bauer down right now: hockey isn’t growing. > The company says in its 2022 annual report that the inflationary environment > highlighted the strength of Peak Achievement's owned brands, as demand for the > products accelerated even as the company raised prices. Hockey registration > statistics in the country as reported by Hockey Canada show the number of > players has increased significantly since the 2020-21 season. However, total > registrations remain at a lower level than they were before the pandemic. > > In the United States, the number of registrations for the 2023-24 season now > exceeds that reached in 2019-20, just before the shock of the pandemic began > to be felt. - Richard Dufour in La Presse (translated from French) - While the Florida Panthers and Edmonton Oilers had high ratings and viewership, which helps the NHL, companies such as Bauer and CCM are about selling skates and gear to the public, including registrants in Hockey Canada and USA Hockey. With participation levels not growing, Bauer and CCM have only one way to keep their internal rate of return in the sweet spot. They have to raise prices. That’s a huge ask for consumers and families whose budgets are already maxed out by minor hockey team fees and travel costs. While both companies are and will continue to attract plenty of interest, it's possible the opportunities are a buyer-beware situation. Disclaimer: The owner and publisher of The Hockey News, W. Graeme Roustan, was the past chairman of Bauer and currently owns hockey brands Northland, Christian and McKenney, which compete with Bauer and CCM. In addition, Roustan owns Roustan Hockey, which has made hockey sticks for Bauer and CCM.
