Potential private equity buyers appear to be steering clear of hockey and baseball equipment maker Performance Sports Group Ltd., clearing the field for a $575-million (U.S.) bid for the company from Sagard Capital Partners LP and Fairfax Financial Holdings Ltd.
Bidders have until Wednesday to submit an offer for PSG, the struggling company behind the Bauer and Easton brands, which filed for creditor protection in October. A number of private equity firms in Canada and the United States, including Bain Capital LP, as well as domestic pension funds, have taken a look at the company, according to sources familiar with the process. Bain is an investor in several Canadian consumer brands, including parka maker Canada Goose Inc. and Ski-Doo manufacturer BRP Inc.
However, sources say most of these potential private equity buyers have decided not to make a bid. If no rival offer emerges, Sagard and Fairfax stand to take control of PSG after making what is known as a stalking horse bid in October. A stalking horse proposal is when an interested buyer obtains approval for a backstop bid of a distressed company ahead of a formal auction.
DAILY DEALS
Two of the country's savviest real estate investors are working on an $800-million-plus deal that speaks to very different views of the Alberta real estate market. Dream Office REIT is close to selling its portfolio of 45 Calgary and Edmonton office buildings to Slate Asset Management, according to people familiar with the talks. Story
Brookfield Asset Management Inc. has entered into an exclusive agreement to buy bankrupt SunEdison Inc.'s two yieldcos, valuing the power companies at as much as $2.46-billion. Story
IN CASE YOU MISSED IT
Tim Kiladze: Sentry Investment's CEO replaced after OSC investigation. Story
Full stories are reserved exclusively for Globe Unlimited subscribers. Click here to sign up