Rawlings is best known as the leading producer of gloves and bats for both baseball and softballGETTY IMAGES
Newell Brands last month "began 'exploring strategic options'" for Rawlings and several other businesses, but a recent report suggests that the sports equipment manufacturer "may be the least attractive of the assets Newell wants to sell," according to David Nicklaus of the ST. LOUIS POST-DISPATCH. Rawlings, a "prestigious name in sports equipment," makes basketballs and footballs but is "best known as the official ball manufacturer" for MLB and a leading producer of gloves and bats for both baseball and softball. Deutsche Bank analysts estimate that Rawlings will fetch about $360M, or eight times the brand’s EBITDA. Nicklaus: "That’s the lowest projected multiple for any of the businesses Deutsche Bank looked at." The company estimates Rawlings’ profit margin at just 10% of sales, "well below the average" of 17% for the eight businesses on the sale block. Rawlings "suffers from operating in a slumping category," but potential buyers "might include Finnish company Amer Sports, owner of the Wilson and Louisville Slugger brands, or the investment firms that bought Performance Sports Group, owner of Easton and Bauer, out of bankruptcy last year" (ST. LOUIS POST-DISPATCH, 2/4).
