MONTREAL 鈥� Swedish private equity firm Altor has signed a deal to buy CCM Hockey, as the two companies eye new demographics and try to build out the global market share of Canada's oldest hockey equipment maker.
Altor, which owns ski maker Rossignol Group, said Wednesday it acquired a "significant" majority stake in CCM from Birch Hill Equity Partners, which had purchased the company from German sportswear giant Adidas in 2017.
The investment company said it aims to help Montreal-based CCM "unlock growth opportunities" across the 40-plus countries in North America, Europe and Asia where it currently operates.
"We are impressed by the durability and innovation that continues to keep the performance of their products at the forefront," said Andreas K盲llstr枚m S盲fwer盲ng, who heads investments in consumer goods companies at Altor.
"Together we will continue the tradition of making sure that all players and goalies are represented in the best possible way in the sport they love."
CCM鈥檚 management will also reinvest in the company, it said in a release. Financial terms of the agreement were not disclosed.
The deal is expected to wrap up by year's end, pending regulatory approval.
Established in 1899, CCM grew into a major manufacturer of hockey sticks, skates and pads, now claiming a roughly 35 per cent share of the global market.
National Hockey League stars from Canada who tote CCM gear include Sidney Crosby and Connor McDavid, while Toronto Maple Leafs captain Auston Matthews and Professional Women's Hockey League superstar Sarah Nurse also sport the brand.
The equipment-heavy sport has high earnings potential, with some gear sold at hefty premiums alongside a gradual expansion in the game's popularity overseas, from Australia to China.
"Hockey is a lucrative business," said Michael Naraine, associate professor of sport management at Brock University.
"It's not as global as basketball or soccer but it is global to an extent, and there is money to be made."
While items such as smaller pads yield lower margins, the more visible accessories often come with high profits 鈥� and price tags.
"When you see Auston Matthews play hockey, you don't see his shin pads or his elbow pads, but you see his skate and you see his stick," Naraine said.
"The cost to produce a stick is probably $40, and high-end sticks are retailing for $429."
A decade ago, skates topped out at about $800, said Naraine, who worked in sports retail in the early 2010s. Now the priciest pairs can sell for almost double that.
"Part of that is the insatiable desire by hockey parents in this country to want to turn out the next Wayne Gretzky, Sidney Crosby and now Connor McDavid. But part of that is also just the consumer acceptability for more expensive composite technology."
The CCM deal comes after the owner of rival Bauer Hockey announced earlier this week that affiliates of Fairfax Financial Holdings Ltd. will acquire controlling interest in the business.
Peak Achievement Athletics Inc. did not reveal the value of the deal, but said the transaction will hand Fairfax an equity interest previously owned by asset management company Sagard Holdings Inc.
Fairfax and Sagard acquired Bauer out of bankruptcy in 2017, paying $575 million for the sports equipment manufacturer.
Despite those financial troubles, Bauer remains the dominant player in the industry, boasting up to 60 per cent market share across the globe. Its acquisition by Fairfax could allow for more cost efficiency and expanded sales potential through outlets such as Sporting Life, owned by the Toronto-based financial firm.
"Bauer's market share in North America in particular is pretty strong," Naraine said. "But I could see Bauer taking a bit of a hit in Europe because of the CCM purchase."
He said CCM's acquisition by an foreign company likely will not diminish Canadians' view of the homegrown brand, which has already known overseas ownership. CCM was bought in 2004 by Boston-based Reebok 鈥� purchased in turn by Bavaria-based Adidas, which held onto it until the 2017 sale to Toronto-based Birch Hill.
"CCM will continue to play up its Canadian theme," Naraine said. "It has some marquee names.
"You see Auston Matthews score 55 goals with a stick, you're going to want to buy that stick."
This report by The Canadian Press was first published Oct. 2, 2024.
Christopher Reynolds, The Canadian Press
