U.S. hedge fund Coliseum Capital Management LLC, the third-largest shareholder of Performance Sports Group Ltd, said it was in talks with a third party related to a potential deal involving the maker of Bauer ice hockey gear.
Performance Sports, which filed for bankruptcy protection in October, has received a “stalking horse” bid from its largest shareholder Sagard Capital Partners LP, an affiliate of Canada’s Power Corp, and Fairfax Financial Holdings Ltd.
A “stalking horse” bid is an opening offer that other interested bidders must surpass if they want to buy the company.
Sagard and Fairfax have agreed to buy most of the company’s assets and its North American units for US$575 million.
Coliseum Capital said on Tuesday it had received consent from Performance Sports’ financial adviser to begin discussions with an affiliate of one of the buyers of the sports gear maker, according to a regulatory filing on Tuesday.
Performance Sports has also received interest from its former chairman, Graeme Roustan, who said in October he was talking with U.S. and Canadian private equity firms about submitting a bid.
Exeter, New Hampshire-based Performance Sports had filed last month for bankruptcy protection in the United States and Canada to facilitate a restructuring and sale of almost all of its assets after it defaulted on a loan payment by missing a deadline.
Bloomberg in October reported citing sources that Canadian alternative assets firm Brookfield Asset Management was considering a bid for troubled Performance Sports.
Update: Founded in the 1920s, the Canadian-born Performance Sports was owned for about a decade by sporting goods maker Nike Inc and then sold to Roustan and U.S. private equity firm Kohlberg & Co in 2008.
It listed on New York and Toronto’s stock exchanges in 2014.
(Reporting by Anet Josline Pinto in Bengaluru; Editing by Shounak Dasgupta)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Performance Sports Group Ltd