NEWS
03/10/2016 07:01 EST | Updated 03/11/2017 00:12 EST

Power Corp.'s Sagard Capital raises stake in Performance Sports, wants on board

MONTREAL — An arm of Power Corporation says it now owns nearly 14 per cent of Performance Sports Group Ltd. (TSX:PSG), which makes Bauer hockey gear, Easton baseball equipment as well as products for lacrosse and soccer players.

Sagard Capital — part of the Montreal-based Power group of companies (TSX:POW) — says it wishes to "engage in communications" with the aim of nominating at least one representative to the Performance Sports board of directors.

It recently acquired about 1.95 million additional shares of Performance Sports, taking its total holdings to 13.63 per cent.

Performance Sports stock recently plunged to new lows after the New Hampshire-based company slashed its 2016 adjusted earnings estimates by about 80 per cent, in part because of bankruptcy proceedings for The Sports Authority retail chain.

Sagard says it paid an average of US$3.35 per share, or C$4.43, for the Performance Sports shares it recently purchased on the Toronto and New York stock markets.

In Toronto, Performance Sports stock closed Wednesday at $4.63, after rising 73 cents or about 19 per cent in one day.

The stock is coming off a 52-week low of $3.76 set on Tuesday after the stock lost nearly two-thirds of its value in unusually heavy trading. The shares have been trending down since last May when they were as high as $25.99.

The Canadian Press