With a market cap of just $181-million (U.S.), Performance Sports Group Ltd. is struggling under the weight of about $440-million in debt and watching its sales decline, as it copes with a string of bankruptcies of major U.S. sports retailers that carried its gear.
The news has gotten worse. PSG revealed in August it is under investigation by the U.S. Securities and Exchange Commission and in Canada, too, after being hit with a shareholder class-action lawsuit alleging it misled investors by not disclosing that its "record" sales were a result of a "fraudulent scheme" to inflate and manipulate its revenues.
Potential buyers are now circling the company, including investment giant Toronto-based Fairfax Financial Holdings Ltd., which often takes bets on distressed companies.
PSG's reversal is stunning for a high-flying company whose Bauer brand holds a crushingly dominant 56-per-cent share of the hockey gear market, a proportion it boosted from 28 per cent in 2006 through a series of bold expansion moves. Story
Deals could be on the rise as firms target oil-sands assets
There is renewed speculation that deal flow is about to pick up among the largest Canadian oil producers, with refineries and oil-sands assets seen as potentially changing hands.
Crude oil prices have shot up and held around $50 (U.S.) a barrel in recent weeks, bolstering confidence and partially easing disagreements over asset values previously blamed for stalling transactions.
A handful of companies have issued shares to fund increased spending programs or complete acquisitions. The most recent was Tourmaline Oil Corp., which last week picked up Alberta and British Columbia natural gas assets from Royal Dutch Shell PLC for about $1.4-billion (Canadian) in cash and stock.
Analysts and investors are watching for updates on deal making as major energy companies start reporting third-quarter numbers this week. Story
IN CASE YOU MISSED IT
Andrew Willis on TD 's low-risk deal for Scottrade. Story
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