Bauer CEO Mark Duggan to Remain with Nike
BEAVERTON, Ore.--(BUSINESS WIRE)--April 17, 2008--NIKE, Inc.
(NYSE:NKE) today announced the completion of its previously disclosed
sale of the company's Bauer Hockey subsidiary to an investor group led
by Kohlberg & Company and Canadian businessman W. Graeme Roustan for
$200 million in cash. The company also announced that Bauer CEO Mark
Duggan, a long-time Nike executive, will remain with Nike following
the sale.
"We're pleased to have completed the sale and are delighted that
Mark has decided to remain with Nike," said Lee Bird, president of
Nike's subsidiaries group. "Mark leaves Bauer Hockey in excellent
shape with record revenue and pretax income and strong positioning as
the No. 1 brand in the marketplace. We look forward to benefiting from
Mark's leadership talents in other roles at Nike."
A former competitive runner, coach and educator, Duggan is an
experienced leader with more than 26 years at Nike.
"Bauer has a great future led by innovative product, brand
leadership and a strong, motivated team that I have enjoyed being a
part of and leading," Duggan said. "Prior to the acquisition, we were
on a performance tear that I hope the team will continue. I will
always have a passion for hockey and the Bauer people and brand. But
my heart belongs to Nike, where I've spent most of my career. I'm
excited to return to Nike and tackle new opportunities."
Bauer, hockey's leading manufacturer, has delivered innovative
products for over 80 years. Founded in 1927, Bauer developed the first
skate with the blade attached to the boot, forever changing the game
of hockey. Since then, Bauer has continued to develop the most sought
after products in the industry, including the widely successful
Supreme and Vapor lines of equipment.
Nike decided to divest Bauer, acquired in 1995, following a
strategic review of the company's subsidiary businesses. As part of
the company's long-term growth strategy, Nike is optimizing its
portfolio of subsidiary brands, which contribute more than $2 billion
in annual revenues, to ensure the company is investing in the greatest
growth opportunities with the highest returns.
Under the terms of the deal, Bauer will continue to use the Nike
Bauer Hockey trademark on existing products for a period of up to two
years.
Lazard acted as financial advisor, and Tonkon Torp acted as legal
advisor to Nike in the transaction. Paul, Weiss, Rifkind, Wharton &
Garrison acted as legal advisor to Kohlberg and Mr. Roustan.
About Nike
NIKE, Inc., based near Beaverton, Oregon, is the world's leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly owned Nike subsidiaries include Converse
Inc., which designs, markets and distributes athletic footwear,
apparel and accessories; Cole Haan Holdings Incorporated, which
designs, markets and distributes luxury shoes, handbags, accessories
and coats; Umbro Ltd., a leading United Kingdom-based global football
(soccer) brand; and Hurley International LLC, which designs, markets
and distributes action sports and youth lifestyle footwear, apparel
and accessories. For more information, visit www.nikebiz.com.
About Kohlberg & Company
Kohlberg & Company is a leading private equity firm with offices
in Mt. Kisco, New York and Portola Valley, California. Since its
inception in 1987, Kohlberg has completed more than 45 platform
investments and more than 50 add-on acquisitions, with aggregate
transaction value in excess of $7 billion. Kohlberg has invested over
$2 billion across six private equity funds to date, including through
its current $1.5 billion sixth fund, Kohlberg Investors VI.
About W. Graeme Roustan
W. Graeme Roustan is a native of Montreal, Quebec, Canada where he
grew up playing hockey from the age of three. Through his wholly owned
holding company ROUSTAN INC., Roustan places equity investments
primarily in the arena and aviation industries. Roustan brings an
extensive network of long-term relationships in the ice hockey
industry and community, proven business acumen and significant
financial resources to follow his vision of vertical integration of
the arena marketplace worldwide. Roustan's extensive portfolios of
arena businesses are managed as part of ROUSTANUNITED,
www.roustanunited.com. For more information, visit the website at
www.roustan.com.
CONTACT: NIKE, Inc.
Investors:
Pamela Catlett, 503-671-4589
or
Media:
Derek Kent, 503-532-1405
SOURCE: NIKE, Inc.