BEAVERTON, Ore.—
The group is led by a U.S. private investment company, Kohlberg & Co., and Canadian businessman W. Graeme Roustan. Kohlberg & Company was formed by the senior founding partner of the well-known private equity firm Kohlberg Kravis Roberts & Co.
Nike acquired Bauer Hockey in 1995 and announced in September that it was exploring the sale of the subsidiary.
The deal, announced Thursday, is expected to close by the end of the current fiscal year. Under the terms of the deal, Bauer will continue to use the Nike Bauer Hockey trademark on existing products for up to two years.
Nike has made several changes to its subsidiary lineup as part of an aggressive growth plan, such as selling Nike Bauer, the Starter brand and purchasing European soccer company Umbro PLC.
Nike reports its subsidiaries contribute more than $2 billion in annual revenue. Bauer brought in about $160 million in 2006, but Nike officials said it is an equipment business in a smaller category and the company had to set priorities.
"Selling this great hockey company was a tough decision but one that was in the best interests of Nike and Bauer as we each look to maximize our respective growth opportunities," Nike President and CEO Mark Parker said in a statement Thursday.
Nike Bauer Hockey is based in New Hampshire. It manufactures and distributes hockey skates, apparel and equipment, as well as equipment for inline skating and street and roller hockey. It is hockey's leading manufacturer.
A large number of would-be buyers, including hockey legends Mario Lemieux and Wayne Gretzky, major competitors, private equity firms and investor groups, formally expressed interest in buying Nike Bauer by filing letters of intent with Lazard, the Wall Street investment bank handling the transaction.
The investor group that purchased Bauer was not immediately available for comment.
