Canadian hockey equipment maker CCM to be bought by Swedish private equity firm

Private equity firm Altor said on Wednesday it has agreed to buy a majority stake in Canada's iconic 125-year-old brand CCM Hockey, which specializes in manufacturing sports equipment and apparel.

Private equity firms are increasingly looking towardthe booming sports sector, where companies partner with popular leagues that attract large crowds and foster a loyal customer base.

In August, NFL owners allowed some private equity firms to buy up to a 10 per centstake in any team, joining other major leagues such as the NBA and MLB, among others, in allowing limited investment from funds.

It sets up the sports sector, including sporting goods companies, for more outside capital and interest from investment firms.

Montreal-based CCM Hockey was founded in 1899. Its products are used by star ice hockey players including Auston Matthews, Sidney Crosby and Connor McDavid.

Reebok bought CCM in 2004 and was then itself bought by Adidas in 2006. Later in 2017, the German company struck a $110-million US deal with Birch Hill Equity Partners to sell CCM.

Today, it operates in over 40 countries and represents many NHLand Professional Women's Hockey League players.

The deal with Stockholm, Sweden-based Altor, an investor in multiple consumer brands, will focus on increasing CCM's growth in both current and new segments, products and markets, the companies said.

The transaction is expected to close by the end of the year.

The CCM deal comes after the owner of rival Bauer Hockeyannounced earlier this week thatToronto-based Fairfax Financial Holdings affiliates will acquire controlling interest in its overall business.

Peak Achievement Athleticsdid not reveal the value of the deal, but said the transaction will hand Fairfax an equity interest previously owned by Montrealasset management company Sagard Holdings.

Fairfax and Sagard acquired Bauer out of bankruptcy in 2017, paying $575 million for the sports equipment manufacturer.