Fairfax stock positions

[nwoodman]

1 hour ago, Hoodlum said:

Eurobank announced today that they have increased the remaining share purchase price for Hellenic Bank from €4.58 per share to €4.84 per share with Demetra selling all of their remaining shares.  This brings Eurobanks ownership in Hellenic bank to 93.47% and will allow for the delisting of Hellenic Bank.  In the new year, Eurobank will issue one last final public offer at €4.84 per share to the remaining shareholders.   

 

https://en.protothema.gr/2024/11/25/eurobank-acquires-93-47-of-hellenic-bank/

Superb!

 

So played out something like this:

 

Edited 15 hours ago by nwoodman

[Viking]

Peak Achievement Athletics - The rebuild has been completed

 

On February 28, 2017, Fairfax partnered with Paul Desmarais III and his team at Sagard Holdings to purchase Performance Sports Group out of bankruptcy for total proceeds of US$575 million. The company was subsequently renamed Peak Achievement Athletics.

 

Performance Sports Group was a leading developer and manufacturer of sports equipment:

• Hockey - Bauer (#1 player)
  • https://ca.bauer.com
• Baseball - Easton (#3 player)
• Lacrosse - Cascade and Maverik (combined, #1 player?)
  • https://cascademaverik.com

Performance Sports Group completes sale of substantially all of its assets to investor group led by Sagard and Fairfax Financial - Article from Feb 27, 2017

• https://www.torys.com/en/work/2016/10/52382aeb-7e85-42dd-903c-309be9bb261a

Why did Performance Sports Group go into bankruptcy?

 

The primary problem wasn’t the business. It was the management team in place at the time - their decisions were terrible (changing their distribution strategy in Canada for Bauer and grossly overpaying for Easton are just two examples). Click the link below for details.

 

Behind the bankruptcy of Performance Sports Group - Article from November 10, 2016

• https://www.nhbr.com/behind-the-bankruptcy-of-performance-sports-group/#:~:text=Graeme%20Roustan%2C%20who%20blames%20the,time%20to%20arrange%20a%20sale.

Details of the partnership

In 2017, Fairfax and Sagard each invested $154 million (C$204 million). Each company held a 42.6% equity interest and 50% of the voting rights in Peak. The investment was accounted for using the equity method.

• It was not disclosed who owned the remaining 14.8% equity position in Peak.

It is interesting that Performance Sports was purchased for total consideration of $575 million and Fairfax and Sagard only invested a total of $308 million (for their 85.2% interest).

 

Who is Sagard Holdings?

 

Sagard is a global multi-strategy alternative asset management firm active in venture capital, private equity, private credit, and real estate.

• https://www.sagard.com 

Sagard was launched in 2002 by the Desmarais family, which controls Montreal-based financial services giant Power Corp. of Canada. The aim was to invest in entrepreneurs and support the growth of middle-market businesses there.

 

Fairfax has built out a wonderful capital allocation platform

 

When deciding what to do with its $69 billion investment portfolio, Fairfax has build out an exceptionally diverse platform within the company that allows it to go to where the opportunity is at any given point in time - in public or private markets. In the case of Peak, Fairfax invested in the private market and like an alternative asset management firm.

 

Fairfax’s partnership with Sagard is another good example of the many partnerships/relationships that Fairfax has been patiently building out over their 38 years of existence as a company. The benefits of what Fairfax has created are far reaching (future deal flow being just one example).

 

The key take-away is Fairfax is extremely flexible with its capital allocation framework. This should lead to better diversification (lower portfolio risk) and better total returns over time.

 

Today, Fairfax’s capability when it comes to capital allocation (structure, expertise, partnerships) is unique in the P/C insurance industry. It has become an important sustainable competitive advantage for the company.

 

Back to our story.

 

Strengthen Easton - 2020

 

In October of 2020, the Easton unit of Peak was acquired by Rawlings Sporting Goods. Easton was the #3 player in baseball and Rawlings was the clear #1 player. In the deal, Peak received $65 million in cash and a 28% stake in Rawlings. Importantly, this deal was done when Covid was raging and demand for all sports equipment (baseball, hockey and lacrosse) had fallen dramatically. Peak got a timely cash infusion and ownership in a much larger, stronger baseball company.

 

The turnaround at Peak

 

The turnaround at Peak took a number of years. Covid likely stalled their transformation by a couple of years. But over time, Peak returned to profitability. This can be seen from the distributions that started to happen to the two partners, Fairfax and Sagard. Below are the numbers that Fairfax has reported over the years for its investment in Peak.

 

 

The sale of Rawlings stake - 2024

 

In Q2-2024, Peak sold its minority position in Rawlings Sporting Goods. A sale price was not disclosed. However, in Q2-2024, Sagard reported receiving a dividend of $60 million from Peak. Fairfax reported YTD September 30, 2024, share of profit of associated of $52 million, and said the elevated amount was due to the sale of Rawlings.

 

Fairfax takes out partner Sagard

 

There were rumours that Peak was being shopped. It is interesting that Fairfax ended up being the buyer. From an article in the Globe and Mail on August 24, 2024:

• “Sagard and Fairfax acquired Bauer out of bankruptcy in 2017 for US$575-million and are targeting a US$800-million exit, according to one of the sources. Bauer’s EBITDA is just more than US$100-million annually, the source said.”
• https://www.theglobeandmail.com/business/article-ccm-bauer-true-hockey-sale/#:~:text=Sagard%20and%20Fairfax%20acquired%20Bauer,to%20one%20of%20the%20sources.

On September 30, 2024, Peak announced that Fairfax had bought out partner Sagard. The purchase will see Fairfax will double their ownership stake in Peak from 42.6% to 85.2%. Fairfax paid $325 million for Sagard’s 42.6% stake. This values Peak at $763 million.

 

Power Corp (owner of Sagard) provided the financial details of the transaction:

• “On September 30, 2024, Peak announced that Fairfax will acquire Sagard’s 42.6% interest in Peak. On close of the transaction, the Corporation expects proceeds of approximately US$325 million, and to recognize a gain in net earnings of approximately US$195 million. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.”

Why did Fairfax buy out Sagard?

 

Here are some thoughts:

1. Fairfax likes the management team.
2. Fairfax likes the long term return potential of the business.
3. Culture wise, Peak is a good fit for Fairfax.

The takeout of Sagard is following a very familiar playbook for Fairfax. Over the past 4 years, the majority of their capital allocation decisions has involved them buying more of stuff they already own. This is a very effective strategy for the following three reasons:

• The investment they are making falls into their circle of competence.
• They are able to value the asset well, allowing them to buy with a margin of safety.
• Growing the size of current investments allows them to concentrate in their best ideas.

This is capital allocation 101 - simple, smart and effective. The kind of capital allocation preached by Warren Buffett, Charlie Munger and Peter Lynch.

 

Here is what Wade Burton (President, Chief Investment Officer, Hamblin Watsa) had to say on Fairfax’s Q3-2024 earnings conference call:

• “We did make one significant announcement in the quarter. We bought out our main partners in Peak Achievement, an athletic wear and equipment company focused on hockey and lacrosse. It is an outstanding business operating in a highly consolidated industry, well run by Ed Kinnaly and his team, incredible track record, and we paid a fair price. We think we will make a very good return over the long run for our shareholders, and importantly, Ed runs the company very much in tune with the Fairfax culture.”
• “Looking back over the last two years, we’ve made three significant long term equity investments, one in Meadow Dairy, a dominant milk ingredients company in the U.K. that is doing very well; another in Sleep Country, a dominant mattress distributor and retailer in Canada; and now a third, Peak, a dominant sporting goods company focused on hockey and lacrosse. All immediately are or will contribute to our earnings, and we believe all will continue to contribute more and more as their businesses progress.”

The non-insurance consolidated companies income stream at Fairfax gets bigger

 

Fairfax continues to make material additions to its collection of non-insurance consolidated company holdings. In 2022, it took Recipe private. In 2023, it purchased Meadow Foods. In 2024, it took Sleep Country private. Peak was an associate holding for Fairfax. On close, Peak will become a consolidated holding. These additions are materially growing the size of this income stream for Fairfax.

 

Here is what Jennifer Allen (Vice President, Chief Financial Officer) had to say on Fairfax’s Q3-2024 earnings conference call:

• “As Wade noted, with our recently announced Sleep Country and Peak Achievement transactions, we expect the operating income from our non- insurance companies reporting segment will grow in the future periods, reflecting the operating income diversity these investments will add to the segment.”

Is a sizeable investment gain coming for Fairfax at close?

 

Sagard is reporting that they expect to book an investment gain of $195 million when the deal closes. Perhaps this is what we also see from Fairfax. At December 30, 2023, Fairfax had a carrying value of $119 million for its 42.6% stake in Peak. Revaluing this to $325 million would result in a significant investment gain.

 

How has Fairfax done with their investment in Peak?

 

My math says Fairfax has generated a total return of about $243 million on its $154 million initial investment in Peak over the past 8 years. This is a CAGR of 12.6%.

 

The dividends received of $72 million is to December 30, 2023. It is likely that Fairfax has received another dividend payment from Peak in 2024 (especially given the sale of their stake in Rawlings). We will likely get an update from Fairfax when they release their 2024 annual report.

 

 

—————

 

Notes from Fairfax annual and quarterly reports:

 

2024 Q3 Report

 

Consolidated share of profit of associates of $609.3 in the first nine months of 2024 principally reflected share of profit of

$343.7 from Eurobank, $163.0 from Poseidon and $52.3 from Peak Achievement (principally reflecting its sale of Rawlings

Sporting Goods), partially offset by share of loss of $60.1 from Sanmar Chemicals Group.

 

2023AR

 

Fairfax continues to jointly own Peak Achievement with our partner, Sagard Holdings. Peak’s core brands are Bauer, the leading hockey brand, and Maverik, a leading lacrosse brand. Peak also owns a minority investment in Rawlings, which is the number one brand in baseball. Fairfax paid $154 million for its stake in Peak in 2017. Since that time, EBITDA has increased steadily in the hockey and lacrosse businesses, and Fairfax has received $72 million in dividends. Hockey participation growth continues post-pandemic and exciting developments such as Bauer’s partnership with the new Professional Women’s Hockey League are expected to drive incremental girls’ participation. More to come under CEO Ed Kinnaly’s leadership, with opportunities in direct-to-consumer, apparel and training. We carry Peak on our balance sheet at less than 5x free cash flow.

 

2020AR

 

Fairfax continues to jointly own Peak Achievement with our partner, Sagard Holdings led by Paul Desmarais III. Peak’s core assets are Bauer, the leading hockey brand, and Easton, the number three manufacturing player in baseball. During 2020 Peak merged Easton with Rawlings, the clear number one manufacturer in baseball. The transaction resulted in $65 million cash paid to Peak, while retaining a 28% stake in Rawlings. Peak is now partnered with Rawlings’ controlling shareholder, Seidler Equity Partners. Fairfax recognized a $15 million gain on the sale of Easton which closed just before year end.

 

2017AR

 

On March 1, 2017 the restructuring of Performance Sports Group Ltd. (‘‘PSG’’) was substantially completed after all of the assets and certain related operating liabilities of PSG were sold to an intermediate holding company (‘‘Performance Sports’’) co-owned by Fairfax and Sagard Holdings Inc. The company’s $153.5 equity investment in Performance Sports represents a voting interest of 50.0% and an equity interest of 42.6%. On April 3, 2017 Performance Sports was renamed Peak Achievement Athletics Inc. (‘‘Peak Achievement’’).

 

2016AR

 

Also, early in 2017 we partnered with Paul Desmarais III and his excellent team at Sagard Capital to purchase Performance Sports. Performance Sports is the owner of the leading names in hockey, baseball and lacrosse equipment: Bauer, Easton and Cascade.

 

—————

 

Notes from Power Corp’s annual and quarterly reports:

 

Power Corp Q3, 2024 Interim Report

 

Peak: Sagard held a 42.6% equity interest and a 50% voting interest in Peak at September 30, 2024 (same as at December 31, 2023). Peak designs, develops and commercializes sports equipment and apparel for ice hockey and lacrosse under iconic brands including Bauer. The Corporation’s investment is accounted for using the equity method.

 

During the second quarter of 2024, Peak disposed of its minority interest in Rawlings Sporting Goods Company Inc. (Rawlings), a leading brand in baseball. In July 2024, Sagard received a distribution of US$60 million from Peak.

 

On September 30, 2024, Peak announced that Fairfax will acquire Sagard’s 42.6% interest in Peak. On close of the transaction, the Corporation expects proceeds of approximately US$325 million, and to recognize a gain in net earnings of approximately US$195 million. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

 

Power Corp 2017AR

 

On February 27, 2017, Peak Achievement Athletics Inc. (Peak), an acquisition vehicle jointly controlled by Sagard Holdings and Fairfax Financial Holdings Limited, completed the acquisition of the assets of Performance Sports Group, Ltd. for total consideration of US$575 million. Peak designs and markets sports equipment and apparel for ice hockey, baseball, softball and lacrosse under iconic brands including Bauer and Easton. At December 31, 2017, the Corporation had invested $204 million (US$154 million) in Peak. Sagard Holdings holds a 42.6% equity interest and 50% of the voting rights in Peak. The Corporation’s investment is accounted for using the equity method.

 

——————

Edited 4 hours ago by Viking

[Hoodlum]

25 minutes ago, Viking said:

Peak Achievement Athletics - The rebuild has been completed

 

On February 28, 2017, Fairfax partnered with Paul Desmarais III and his team at Sagard Holdings to purchase Performance Sports Group out of bankruptcy for total proceeds of US$575 million. The company was subsequently renames Peak Achievement Athletics.

 

Performance Sports Group was a leading developer and manufacturer of sports equipment:

• Hockey - Bauer (#1 player)
  • https://ca.bauer.com
• Baseball - Easton (#3 player)
• Lacrosse - Cascade and Maverik (combined, #1 player?)
  • https://cascademaverik.com

Performance Sports Group completes sale of substantially all of its assets to investor group led by Sagard and Fairfax Financial - Article from Feb 27, 2017

• https://www.torys.com/en/work/2016/10/52382aeb-7e85-42dd-903c-309be9bb261a

Why did Performance Sports Group go into bankruptcy?

 

The primary problem wasn’t the business. It was the management team in place at the time - their decisions were terrible (changing their distribution strategy in Canada for Bauer and grossly overpaying for Easton are just two examples). Click the link below for details.

 

Behind the bankruptcy of Performance Sports Group - Article from November 10, 2016

• https://www.nhbr.com/behind-the-bankruptcy-of-performance-sports-group/#:~:text=Graeme%20Roustan%2C%20who%20blames%20the,time%20to%20arrange%20a%20sale.

Details of the partnership

 

In 2017, Fairfax and Sagard each invested $154 million (C$204 million). Each company held a 42.6% equity interest and 50% of the voting rights in Peak. The investment was accounted for using the equity method.

• It was not disclosed who owned the remaining 14.8% equity position in Peak.

It is interesting that Performance Sports was purchased for total consideration of $575 million and Fairfax and Sagard only invested a total of $308 million (for their 85.2% interest).

 

Who is Sagard Holdings?

 

Sagard is a global multi-strategy alternative asset management firm active in venture capital, private equity, private credit, and real estate.

• https://www.sagard.com 

Sagard was launched in 2002 by the Desmarais family, which controls Montreal-based financial services giant Power Corp. of Canada. The aim was to invest in entrepreneurs and support the growth of middle-market businesses there.

 

Fairfax has built out a wonderful capital allocation platform

 

When deciding what to do with its $69 billion investment portfolio, Fairfax has build out an exceptionally diverse platform within the company that allows it to go to where the opportunity is at any given point in time - in public or private markets. In the case of Peak, Fairfax invested in the private market and like an alternative asset management firm.

 

Fairfax’s partnership with Sagard is another good example of the many partnerships/relationships that Fairfax has been patiently building out over their 38 years of existence as a company. The benefits of what Fairfax has created are far reaching (future deal flow being just one example).

 

The key take-away is Fairfax is extremely flexible with its capital allocation framework. This should lead to better diversification (lower portfolio risk) and better total returns over time.

 

Today, Fairfax’s capability when it comes to capital allocation (structure, expertise, partnerships) is unique in the P/C insurance industry. It has become an important sustainable competitive advantage for the company.

 

Back to our story.

 

Strengthen Easton - 2020

 

In October of 2020, the Easton unit of Peak was acquired by Rawlings Sporting Goods. Easton was the #3 player in baseball and Rawlings was the clear #1 player. In the deal, Peak received $65 million in cash and a 28% stake in Rawlings. Importantly, this deal was done when Covid was raging and demand for all sports equipment (baseball, hockey and lacrosse) had fallen dramatically. Peak got a timely cash infusion and ownership in a much larger, stronger baseball company.

 

The turnaround at Peak

 

The turnaround at Peak took a number of years. Covid likely stalled their transformation by a couple of years. But over time, Peak returned to profitability. This can be seen from the distributions that started to happen to the two partners, Fairfax and Sagard. Below are the numbers that Fairfax has reported over the years for its investment in Peak.

 

 

The sale of Rawlings stake - 2024

 

In Q2-2024, Peak sold its minority position in Rawlings Sporting Goods. A sale price was not disclosed. However, in Q2-2024, Sagard reported receiving a dividend of $60 million from Peak. Fairfax reported YTD September 30, 2024, share of profit of associated of $52 million, and said the elevated amount was due to the sale of Rawlings.

 

Fairfax takes out partner Sagard

 

There were rumours that Peak was being shopped. It is interesting that Fairfax ended up being the buyer. From an article in the Globe and Mail on August 24, 2024:

• “Sagard and Fairfax acquired Bauer out of bankruptcy in 2017 for US$575-million and are targeting a US$800-million exit, according to one of the sources. Bauer’s EBITDA is just more than US$100-million annually, the source said.”
• https://www.theglobeandmail.com/business/article-ccm-bauer-true-hockey-sale/#:~:text=Sagard%20and%20Fairfax%20acquired%20Bauer,to%20one%20of%20the%20sources.

 

On September 30, 2024, Peak announced that Fairfax had bought out partner Sagard. The purchase will see Fairfax will double their ownership stake in Peak from 42.6% to 85.2%. Fairfax paid $325 million for Sagard’s 42.6% stake. This values Peak at $763 million.

 

Power Corp (owner of Sagard) provided the financial details of the transaction:

• “On September 30, 2024, Peak announced that Fairfax will acquire Sagard’s 42.6% interest in Peak. On close of the transaction, the Corporation expects proceeds of approximately US$325 million, and to recognize a gain in net earnings of approximately US$195 million. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.”

Why did Fairfax buy out Sagard?

 

Here are some thoughts:

1. Fairfax likes the management team.
2. Fairfax likes the long term return potential of the business.
3. Culture wise, Peak is a good fit for Fairfax.

The takeout of Sagard is following a very familiar playbook for Fairfax. Over the past 4 years, the majority of their capital allocation decisions has involved them buying more of stuff they already own (and understand exceptionally well). This is capital allocation 101 - simple, smart and effective.

 

Here is what Wade Burton (President, Chief Investment Officer, Hamblin Watsa) had to say on Fairfax’s Q3-2024 earnings conference call:

• “We did make one significant announcement in the quarter. We bought out our main partners in Peak Achievement, an athletic wear and equipment company focused on hockey and lacrosse. It is an outstanding business operating in a highly consolidated industry, well run by Ed Kinnaly and his team, incredible track record, and we paid a fair price. We think we will make a very good return over the long run for our shareholders, and importantly, Ed runs the company very much in tune with the Fairfax culture.”
• “Looking back over the last two years, we’ve made three significant long term equity investments, one in Meadow Dairy, a dominant milk ingredients company in the U.K. that is doing very well; another in Sleep Country, a dominant mattress distributor and retailer in Canada; and now a third, Peak, a dominant sporting goods company focused on hockey and lacrosse. All immediately are or will contribute to our earnings, and we believe all will continue to contribute more and more as their businesses progress.”

 

The non-insurance consolidated companies income stream at Fairfax gets bigger

 

Fairfax continues to make material additions to its collection of non-insurance consolidated company holdings. In 2022, it took Recipe private. In 2023, it purchased Meadow Foods. In 2024, it took Sleep Country private. Peak was an associate holding for Fairfax. On close, Peak will become a consolidated holding. These additions are materially growing the size of this income stream for Fairfax.

 

Here is what Jennifer Allen (Vice President, Chief Financial Officer) had to say on Fairfax’s Q3-2024 earnings conference call:

• “As Wade noted, with our recently announced Sleep Country and Peak Achievement transactions, we expect the operating income from our non- insurance companies reporting segment will grow in the future periods, reflecting the operating income diversity these investments will add to the segment.”

Is a sizeable investment gain coming for Fairfax at close?

 

Sagard is reporting that they expect to book an investment gain of $195 million when the deal closes. Perhaps this is what we also see from Fairfax. At December 30, 2023, Fairfax had a carrying value of $119 million for its 42.6% stake in Peak. Revaluing this to $325 million would result in a significant investment gain.

 

How has Fairfax done with their investment in Peak?

 

My math says Fairfax has generated a total return of about $243 million on its $154 million initial investment in Peak over the past 8 years. This is a CAGR of 12.6%.

 

The dividends received of $72 million is to December 30, 2023. It is likely that Fairfax has received another dividend payment from Peak in 2024 (especially given the sale of their stake in Rawlings). We will likely get an update from Fairfax when they release their 2024 annual report.

 

 

—————

 

Notes from Fairfax annual and quarterly reports:

 

2024 Q2 Report

 

Consolidated share of profit of associates of $221.4 in the second quarter of 2024 principally reflected share of profit of $126.1 from Eurobank, $66.5 from Poseidon and $31.5 from Peak Achievement (principally reflecting its sale of Rawlings Sporting Goods), partially offset by share of loss of $39.0 from Sanmar Chemicals Group.

 

2023AR

 

Fairfax continues to jointly own Peak Achievement with our partner, Sagard Holdings. Peak’s core brands are Bauer, the leading hockey brand, and Maverik, a leading lacrosse brand. Peak also owns a minority investment in Rawlings, which is the number one brand in baseball. Fairfax paid $154 million for its stake in Peak in 2017. Since that time, EBITDA has increased steadily in the hockey and lacrosse businesses, and Fairfax has received $72 million in dividends. Hockey participation growth continues post-pandemic and exciting developments such as Bauer’s partnership with the new Professional Women’s Hockey League are expected to drive incremental girls’ participation. More to come under CEO Ed Kinnaly’s leadership, with opportunities in direct-to-consumer, apparel and training. We carry Peak on our balance sheet at less than 5x free cash flow.

 

2020AR

 

Fairfax continues to jointly own Peak Achievement with our partner, Sagard Holdings led by Paul Desmarais III. Peak’s core assets are Bauer, the leading hockey brand, and Easton, the number three manufacturing player in baseball. During 2020 Peak merged Easton with Rawlings, the clear number one manufacturer in baseball. The transaction resulted in $65 million cash paid to Peak, while retaining a 28% stake in Rawlings. Peak is now partnered with Rawlings’ controlling shareholder, Seidler Equity Partners. Fairfax recognized a $15 million gain on the sale of Easton which closed just before year end.

 

2017AR

 

On March 1, 2017 the restructuring of Performance Sports Group Ltd. (‘‘PSG’’) was substantially completed after all of the assets and certain related operating liabilities of PSG were sold to an intermediate holding company (‘‘Performance Sports’’) co-owned by Fairfax and Sagard Holdings Inc. The company’s $153.5 equity investment in Performance Sports represents a voting interest of 50.0% and an equity interest of 42.6%. On April 3, 2017 Performance Sports was renamed Peak Achievement Athletics Inc. (‘‘Peak Achievement’’).

 

2016AR

 

Also, early in 2017 we partnered with Paul Desmarais III and his excellent team at Sagard Capital to purchase Performance Sports. Performance Sports is the owner of the leading names in hockey, baseball and lacrosse equipment: Bauer, Easton and Cascade.

 

—————

Notes from Power Corp’s annual and quarterly reports:

 

Power Corp Q3, 2024 Interim Report

 

Peak: Sagard held a 42.6% equity interest and a 50% voting interest in Peak at September 30, 2024 (same as at December 31, 2023). Peak designs, develops and commercializes sports equipment and apparel for ice hockey and lacrosse under iconic brands including Bauer. The Corporation’s investment is accounted for using the equity method.

 

During the second quarter of 2024, Peak disposed of its minority interest in Rawlings Sporting Goods Company Inc. (Rawlings), a leading brand in baseball. In July 2024, Sagard received a distribution of US$60 million from Peak.

 

On September 30, 2024, Peak announced that Fairfax will acquire Sagard’s 42.6% interest in Peak. On close of the transaction, the Corporation expects proceeds of approximately US$325 million, and to recognize a gain in net earnings of approximately US$195 million. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

 

Power Corp 2017AR

 

On February 27, 2017, Peak Achievement Athletics Inc. (Peak), an acquisition vehicle jointly controlled by Sagard Holdings and Fairfax Financial Holdings Limited, completed the acquisition of the assets of Performance Sports Group, Ltd. for total consideration of US$575 million. Peak designs and markets sports equipment and apparel for ice hockey, baseball, softball and lacrosse under iconic brands including Bauer and Easton. At December 31, 2017, the Corporation had invested $204 million (US$154 million) in Peak. Sagard Holdings holds a 42.6% equity interest and 50% of the voting rights in Peak. The Corporation’s investment is accounted for using the equity method.

 

——————

 

Thanks @Viking for the detailed outline of the Peak transaction history and summary.  It is a little easier now to understand the Peak investment with Bauer becoming the main business.  It will be interesting to see the dividend capacity in 2025 for Peak, as this should give us an idea of what to expect going forward.