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Lexpert: How an unbeatable bid saved Performance Sports Group

In 2016, bankruptcy checked Performance Sports Group into the boards. But an unbeatable bid followed by a $575-million (U.S.) asset sale to Sagard Holdings and Fairfax Financial Holdings saved its iconic hockey and baseball brands.

A subsidiary of Montreal-based Power Corp. of Canada, Sagard made a $575-million stalking-horse bid for PSG in conjunction with Fairfax. The Sagard/Fairfax lineup offered PSG $386-million in debtor-in-possession financing so it could continue operations while it restructured, and an auction process was then launched.

Last February, with no bidders coming forth to top Sagard/Fairfax, the Canadian and U.S. courts approved the sale of substantially all of PSG's assets to that pair of companies and the transaction closed. The deal was called "unique" because PSG's equity was not wiped out completely.

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Lexpert contributor Anthony Davis reports at www.lexpert.ca.

Follow Lexpert on Twitter: @Lexpert

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