Brookfield, Power Corp. Unit Join for Performance Sports Reviewby
Embattled maker of Bauer and Easton brand faces debt deadline
Shareholders said they are reviewing strategic alternatives
Brookfield Asset Management Inc. and Sagard Capital Partners LP have entered into an agreement to explore strategic alternatives for the embattled Performance Sports Group Ltd., the maker of Bauer and Easton brands.
Sagard Capital, a division of Power Corp. of Canada, and Brookfield, through its subsidiary Brookfield Capital Partners, are the two largest shareholders in Performance Sports, collectively owning more than 30 percent of the Exeter, New Hampshire-based company, according to data compiled by Bloomberg.
The partners said in a statement they have discussed the possibility of working together on a plan or a proposal to restructure, issue additional debt or acquire the existing debt of the company, and other strategic alternatives.
Earlier this week, Sagard said it had entered into a similar arrangement with Toronto-based Fairfax Financial Holding Ltd. Fairfax has no disclosed stake in Performance Sports, according to Bloomberg data.
None of the parties said they had entered into any formal agreements, term sheets or other arrangements to bid on the company or its debt, they said. Toronto-based Brookfield said Thursday it had concluded that if it were to proceed with a plan or proposal involving Performance Sports, it has concluded it would likely do so with Sagard Capital.
Performance Sports has fallen about 60 percent this year amid an investigation into the company by U.S. and Canadian securities regulators. The company also delayed reporting its earnings amid an internal investigation.
In August, the company said it hired Centerview Partners to advise on a strategic review. It also said it had agreed to an extension with its lenders through Oct. 28 to file its earnings under current credit agreements.