Target Company Overview

CCM Hockey, founded in 1899, is a premier designer, manufacturer, and distributor of hockey equipment, offering products such as sticks, skates, protective gear, helmets, goalie equipment, and apparel. With its headquarters in Montreal, Canada, CCM operates in over 40 countries and is prominently represented by numerous NHL and PWHL superstars. The company is recognized as the leading brand for professional hockey players worldwide, embodying a rich heritage and a commitment to high-quality performance products.

Industry Overview in Canada

The Canadian sports equipment industry, particularly hockey, has seen significant growth fueled by the nation’s deep-rooted passion for the sport. Ice hockey is not just a pastime; it is a core part of Canadian culture, with extensive participation across age groups and skill levels. This avid consumer base drives demand for high-quality hockey gear, presenting substantial opportunities for established brands like CCM Hockey.

Moreover, the industry has benefited from an increase in investment and interest in youth hockey programs, enhancing grassroots participation. As a result, manufacturers in this sector are capitalizing on the growing popularity of the sport, leading to innovative product developments and improved customer engagement strategies.

In recent years, advancements in technology have transformed the manufacturing processes and product offerings in the hockey equipment industry. Companies are now utilizing advanced materials and design practices to create lighter, stronger, and safer gear, meeting the evolving needs of players at all levels. This progressive trend allows companies like CCM to differentiate themselves from competitors and reinforce their market leadership.

Furthermore, with the rising global interest in hockey, particularly in emerging markets, Canadian companies have the opportunity to expand their reach and tap into new consumer demographics. This dynamic environment fosters a favorable outlook for companies actively engaged in the hockey equipment market.

Rationale Behind the Deal

The partnership between Northleaf Capital Partners and Altor Equity Partners aims to leverage CCM's iconic brand and the favorable industry dynamics to drive significant growth. Northleaf is committed to supporting CCM's ambitious growth strategy while benefiting from Altor's extensive consumer sector expertise. By combining resources, both firms intend to unlock new opportunities and accelerate CCM’s strategic initiatives.

This investment comes at a pivotal time as CCM celebrates its 125-year anniversary, marking a new chapter in its storied history. The collaboration is expected to enhance CCM's operational capabilities and market position, reinforcing its commitment to innovation and delivering high-performance products.

Information About the Investor

Northleaf Capital Partners is a global private markets investment firm, managing over US$27 billion across private equity, private credit, and infrastructure commitments. With a robust team of 275 professionals located in major global cities, Northleaf is recognized for its deep expertise in mid-market investments and strong track record of successful partnerships in the private equity space, including over 150 private equity co-investments.

Altor Equity Partners, a leading European middle-market private equity firm, has raised more than EUR 11 billion in total commitments since its inception. Altor focuses on medium-sized companies, primarily in the Nordic and DACH regions, facilitating value creation through growth initiatives and operational enhancements. The firm's extensive experience and track record in consumer investments complement Northleaf’s capabilities, making this partnership strategically beneficial for both parties.

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The investment in CCM Hockey presents a compelling opportunity in the sports equipment market, particularly given the company's strong brand equity and the favorable trends in the hockey industry. Northleaf’s and Altor’s partnership is likely to provide the necessary resources and expertise to accelerate the growth potential of the company. The alignment of both firms' strategic focus on consumer sectors could enable CCM to tap into new markets and innovate effectively.

Additionally, the growth of youth hockey programs and increased participation highlights a sustainable demand for hockey equipment, which bodes well for CCM's long-term success. This trend positions the company to benefit from both domestic and international growth initiatives, making it a potentially rewarding investment for shareholders.

Moreover, with the global rise in interest for hockey as a sport and opportunities for product line expansions, this partnership may lead CCM to explore new product developments and marketing strategies, further enhancing its market standing. Overall, this investment appears to be a strategically sound decision that could yield significant returns in the evolving landscape of sports equipment.

In conclusion, the investment in CCM Hockey by Northleaf and Altor reflects a well-considered approach to leveraging market trends and the company's established presence in the hockey sector. With the right execution of growth strategies, this deal could prove to be a wise investment moving forward.

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