Reebok International to Buy The Hockey Co. Holdings Inc. for 0.85 Times Revenue

Weekly Corporate Growth Report, Apr 26, 2004

The Deal: Reebok International Inc. has agreed to purchase The Hockey Company Holdings Inc. for about $204 million. Reebok will also assume about $125 million in debt. The deal requires shareholder approval and shareholders representing about 41 percent of Hockey Co.'s outstanding stock have already agreed to vote in favor of the offer.

Discussion: The Hockey Company is the holding company for the CCM, JOFA, and KOHO brands of hockey apparel and equipment, which are used by "nearly every player in the National Hockey League," according to Reebok. The company is also the exclusive equipment supplier to the Canadian Hockey League. The company, previously known as SLM International, is the world's top hockey equipment maker. The Hockey Company also makes in-line skates and ski and equestrian helmets.

Reebok International is the number two US maker of athletic shoes (Nike holds the leading spot). In addition to Reebok brand products, the company also makes sports the Greg Norman line of men's casual wear, Rockport walking and casual shoes, and Ralph Lauren and Polo dress and athletic shoes. Reebok operates more than 205 retail stores.

The acquisition will strengthen Reebok's position in both the professional and recreational hockey-equipment markets.