Struggling Easton-Bell Sports Inc. has reached an agreement to sell its baseball and softball business to a Canadian firm for $330 million, the Van Nuys sporting goods manufacturer announced on Thursday.
Following the sale, Easton-Bell will be renamed BRG Sports.
Bauer Performance Sports Ltd. of Kitchener, Ontario, will acquire the business. Bauer is a manufacturer of ice hockey, roller hockey, lacrosse, baseball and softball sports equipment, as well as apparel. The all-cash deal is expected to close in the next 30 to 60 days.
Easton-Bell also announced it is working towards an agreement with another company for the sale of is hockey business.
Proceeds from the two deals will be used to grow the company’s remaining businesses in helmets, football, cycling and other actions sports. Products are sold under the Riddell, Giro, Blackburn and Easton brands. The company also plans to trim its $350 million in debt.
“Becoming a leaner, more focused organization will further enable BRG Sports to move faster and smarter, take full advantage of strategic growth opportunities, and strengthen its broad leadership position in today’s competitive marketplace,” said Chairman and Chief Executive Terry Lee, in a statement.
The announcement follows a difficult year for the company. In its fiscal third quarter earnings released in November, Easton-Bell reported a net loss of $8.7 million and a drop in sales of more than 6 percent.
The company is privately held but reports some financial information because its debt trades on public markets. In April, there were reports the company was on the market for about $900 million, but both Easton-Bell and Fenway Partners, its private equity owners, have declined comment.
Fenway acquired predecessor company Easton Sports Inc. in 2006 for $400 million and merged the company into its existing Riddell Bell Holdings, makers of helmets and other sporting equipment. Second-generation owner Jim Easton sold most of his stake in that deal.
The company has manufacturing and distribution facilities in 32 locations worldwide.