Hockey equipment makers CCM to 'eclipse $570M' in sale: Report

By Nestor Quixtan

Modified Aug 23, 2024 03:11 GMT

Hockey equipment manufacturer CCM is expected to close on sale, surpassing the $570 million mark, TSN’s Rick Westhead reports. The private investment firm, Birch Hill Equity Partners, which currently owns CCM, will be selling the company to another group of investors. Birch Hill reportedly paid $110 million for the hockey equipment manufacturer in a purchase from its former parent company, Adidas.

The sale should have a significant ripple effect on the NHL. Mordor Intelligence lists CCM as one of the hockey equipment industry’s major players, along with Bauer and True Temper Sports. According to Mordor, the estimated total market cap for the hockey equipment industry was $1.91 billion in 2023.

However, Mordor projects that the industry will balloon to $2.43 billion by 2028. Thus, the reported sale opens the door for investors to capture a significant chunk of an expanding market.

But as Westhead noted, the economics of the hockey equipment industry should also affect teams and players as the potential deal sale could drive equipment prices up.

If that’s indeed the case, teams and players may face additional pressure due to rising costs, potentially driving ticket and merchandise prices up.

While there is no official announcement on the company's sale at the moment, confirmation could come any time soon. It is important to keep a tab on the situation closely, as it could impact NHL economics across the board.

CCM is an industry leader in an expanding market

According to Mordor, CCM is an industry leader. The largely profitable company has increased its investments in research and development while expanding its distribution channels. These initiatives have allowed the company to position itself within the hockey equipment market.

Moreover, CCM’s dedication to innovating its products has allowed it to differentiate itself from other competitors. In particular, Mordor reports that players distinguish the brand's products due to their “design, quality, weight, and size to gain a competitive advantage.”

This previous point is crucial as the evolution of equipment has come under the microscope in recent years. Specifically, analysts have pointed out how equipment has allowed players to enhance their skills. As a result, today’s players can skate faster, and shoot more accurately, while goalie equipment has enabled netminders to become more effective.

Given hockey’s expanding popularity worldwide, it’s safe to assume that equipment manufacturers could see an uptick in demand over the coming years. Thus, companies in this industry can leverage their innovation to capture an even larger slice of the growing market.

In the meantime, it remains to be seen if an increased cost of equipment could prompt players and teams to seek more cost-effective alternatives from other brands and manufacturers.