Brookfield, Sagard in huddle to discuss next play for Performance Sports Group
TORONTO – Two of the largest shareholders in Performance Sports Group have signed confidentiality agreements with each other and plan to discuss strategic options for the maker of Bauer hockey skates, Easton baseball gear and other sports equipment.
The agreements involve the Sagard Capital Partners arm of Montreal-based Power Corp. (TSX:POW) and Brookfield Capital Partners, part of Toronto-based Brookfield Asset Management (TSX:BAM.A).
Sagard owns 16.9 per cent of Performance Sports (TSX:PSG) and Brookfield holds about 13.2 per cent of the New Hampshire-based company, which has historical roots in Canada.
Performance Sports has been struggling since the bankruptcy of a major U.S. customer earlier this year. It’s approaching a Friday deadline for filing its delayed financial reports with regulators.
Sagard and Brookfield Capital said Thursday that they’ve discussed the possibility of working together on potential strategic options for Performance such as a restructuring or refinancing.
Sagard announced a similar confidentiality agreement with Fairfax Financial Holdings Ltd. (TSX:FFH) on Monday. Fairfax which has a record of investing in troubled businesses and helping turn them around doesn’t own or control any shares of Performance Sports.
Performance Sports announced in August that it was unable to file an 2016 audited annual report with regulators on time. Its lenders gave the company until Oct. 28 to file its 2016 annual report and its report for the first quarter of its 2017 financial year.