zapatillas de deporte nike air max Nike in Accord to Purchase Hockey Equipment Maker

nike air max st Nike in Accord to Purchase Hockey Equipment Maker

Branching out in providing equipment for the feet, Nike Inc. said yesterday that it had agreed to pay $395 million for Canstar Sports Inc., a Canadian company that is a leading manufacturer of ice skates and hockey equipment.

Nike agreed to pay $19.875 for each Canstar share, roughly 60 percent higher than the market price.

Shares of Canstar, which have languished at the $12 level for much of the year, jumped $6.125, to $19.125, in Nasdaq trading, where the stock was the most active issue yesterday. The company’s shares also trade on the Toronto and Montreal stock exchanges.

Shares of Nike rose $2, to $68, on the New York Stock Exchange yesterday.

Nike, the world’s largest manufacturer of athletic footwear, has never made skates. Nike’s chairman and chief executive, Philip H. Knight, said Canstar would “continue to operate as an autonomous organization without any change to its structure, operations, management or personnel.”

Canstar, based in Ville Mont Royal, Quebec, a suburb of Montreal, sells skates under the Bauer, Micron and Daoust brand names, and about 70 percent of the National Hockey League’s players wear its skates. Canstar also makes Cooper and Flak protective equipment for hockey, in line skates that compete with Roller Blades and Ultrawheels, and a variety of ski and snowboard equipment.

Canstar said it expected sales this year to be about $205 million, up 41 percent from 1993. Nike’s sales were 43.9 billion for the 12 months that ended on Aug. 31.

Kevin J. Dukesherer, an analyst with Kemper Securities in Chicago, said the deal “looks like a very good move for both companies,” adding: “Canstar will get further access to distribution and to Nike’s strong marketing experience. Canstar is a technical and new product development type of company, as is Nike.”

But Nike’s basketball, football, and running gear “will continue to be much bigger” than the company’s hockey business, he said. The acquisition should add about 10 cents a share to Nike’s earnings for the 1995 fiscal year, he added.

While Nike paid more than Canstar’s estimated market value, it was “a good price,” Marie Josee Privyk, director of research at Marleau Lemire Securities in Montreal, told Bloomberg Business News. “Growth in athletic footwear isn’t huge right now, but growth in roller hockey, street hockey, ice hockey and in line skating is growing fast.”

Nike, based in Beaverton, Ore., also makes men’s and women’s dress and casual shoes through its Cole Haan subsidiary in Yarmouth, Me., and head wear through its Sports Specialties subsidiary based in Irvine, Calif.

Nike leads the $11.62 billion athletic shoe industry in the United States, with about 32 percent of the market, while Reebok International Ltd. is No. 2, with about 21 percent, according to Sporting Goods Intelligence, a newsletter based in Glen Mills, Pa. Canstar’s principal rival in the ice skate market is CCM, a subsidiary of SLM International of New York.

Graph: “Finally, Some Hockey Action” tracks weekly closes of Canstar Sports shares in Nasdaq trading since the beginning of the third quarter of 1993. Nike has agreed to pay $395 million for the Canadian maker of ice skates and hockey equipment. (Source: Datastream)
zapatillas de deporte nike air max Nike in Accord to Purchase Hockey Equipment Maker

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