Hillerich & Bradsby yesterday announced that it is "selling its iconic Louisville Slugger brand to Wilson Sporting Goods, cutting 52 employees or a fifth of its workforce," according to Grace Schneider of the Louisville COURIER-JOURNAL. Under the $70M "cash deal due to close in June, Wilson would acquire global brand, sales and innovation rights to Louisville Slugger, pending H&B shareholder approval." Wilson "sees an opportunity to boost overseas sales" because Louisville Slugger sells 90% of its products in the U.S. H&B "would continue manufacturing" all Louisville Slugger-branded MLB, MiLB, amateur and souvenir wooden bats for Wilson, while "maintaining ownership of the Louisville Slugger Museum & Factory." Its Bionic gloves and Powerbilt golf brand "are not part of the deal." H&B President & CEO John Hillerich IV yesterday said that the company "intends to pay off undisclosed debt and use remaining sale proceeds to improve the bat production facility, invest in its Bionic brand and make improvements to its museum exhibits." H&B, a "131-year-old homegrown Louisville company," employs 273 people, but the workforce "will shrink to 177 in the next four months." Forty-four of the jobs, "roughly half of which are sales positions in the field, will be shifted to Wilson" (Louisville COURIER-JOURNAL, 3/24). National Sporting Goods Association Dir of Communication Marty Maciaszek said that an increase in the number of bat makers in recent years "has made it harder for sporting goods companies that focus heavily on one sport, like H&B, to compete." REUTERS' Bittenbender & Rosendahl note Louisville Slugger also "has been a target for numerous lawsuits tied to injuries sustained by youth baseball players in recent years" (REUTERS, 3/24).
COMING TO GRIPS: Hillerich said that Wilson "made an offer the family could not refuse." He added that the deal "is necessary to ensure that the brand remains viable into the future." Hillerich said that H&B "can no longer compete with larger, multinational companies with more resources." He added that he had "expected the brand to always remain independent and family-owned." Wilson President Mike Dowse said that the two companies "will remain standalone brands because they represent iconic products." In Louisville, Marty Finley reported there are "no plans to cross-brand or combine the two brands" (BIZJOURNALS.com, 3/23). The WALL STREET JOURNAL's Germano & Dulaney note Wilson is part of Finland-based Amer Sports’ ball-sports division, the parent company’s "second largest division by revenue." That division’s "sales fell 3%" in '14. Amer Sports President & CEO Heikki Takala yesterday said that he "expects the acquisition to add to profits beginning" in '16 (WALL STREET JOURNAL, 3/24).
