Nike to sell Bauer Hockey subsidiary
NEW YORK (Reuters) - Nike Inc (NKE.N: Quote) said on Thursday that it reached a deal to sell its Bauer Hockey division to an investor group led by Kohlberg & Co and Canadian businessman W. Graeme Roustan for $200 million in cash.
Nike, the world's largest maker of athletic clothing and footwear, expects the transaction to be completed before the end of May, the end of its current fiscal year.
The global sports company, which acquired Bauer Hockey in 1995, announced in September it was exploring the sale of that division, which makes hockey equipment and apparel.
Nike has been concentrating on footwear and apparel geared to specific sports and segments in which it sees the most growth, namely running, basketball, football, women's fitness, men's training and sports culture. Those segments are expected to drive over 75 percent of the Nike brand's growth.
Bauer Hockey was one of the affiliate brands owned by Nike in a group that also includes Nike Golf, Hurley International, Cole Haan, Converse and Exeter Brands.
Roustan will become the new chairman of Bauer Hockey.
The brand was founded in 1927 and was the first to design a hockey skate with the blade attached to the boot.
(Reporting by Alexandria Sage and Nicole Maestri; Editing by Derek Caney)
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