Montreal Canadiens head coach Martin St. Louis. St. Louis co-founded the PE firm Seven7 in 2016 with a number of financial executives who played hockey at U.S. colleges and in the NHL.Nick Wass/The Associated Press
Montreal Canadiens head coach Martin St. Louis scored a stake in CCM Hockey, as a private equity firm co-founded by the former NHL all-star joined two other PE investors in the iconic equipment maker.
On Tuesday, Stamford, Conn.-based Seven7 LLC bought a minority holding in Montreal-based CCM from Stockholm-based Altor Equity Partners, which acquired the 126-year-old business less than a year ago for $600-million. The two fund managers did not disclose financial terms of the transaction.
Mr. St. Louis, a native of Laval, Que., co-founded Seven7 in 2016 with a number of financial executives who played hockey at U.S. colleges and in the NHL, including retired Chicago Blackhawks forward Jeff Hamilton.
Mr. St. Louis set a scoring record at the University of Vermont, then went undrafted in the NHL before playing 16 seasons with three teams, including a Stanley Cup win with the Tampa Bay Lightning. He has been the Canadiens’ head coach since 2022.
Last October, Altor bought CCM from another private equity fund, Birch Hill Equity Partners, which is headquartered in Toronto. The sale valued CCM at eight times the company’s earnings before interest, taxes, depreciation and amortization (EBITDA).
In January, Altor also sold a minority stake in CCM to Northleaf Capital Partners Ltd., a Toronto-based private equity fund.
Seven7 holds stakes in a number of hockey-related businesses, including backyard rink kit maker EZ Ice and apparel company Sauce Hockey. In a press release, Seven7 chief investment officer Daryl Jones said the fund is backing CCM’s plans to expand internationally and roll out new products, including skates and gear for female players.
“Hockey is growing around the world and CCM is right at the centre of that expansion,” said Mr. Jones, who played for Yale University’s hockey team. “At Seven7, we look for cultural relevance, passionate communities and long-term brand value and CCM checks every box.”
The National Hockey League’s Auston Matthews, Connor McDavid and Sidney Crosby play with CCM equipment. Professional Women’s Hockey League star Sarah Nurse uses CCM gear, as do Kendall Coyne-Schofield, Taylor Heise and Erin Ambrose.
Seven7’s investors include former hockey player Mike Commodore, who won a Stanley Cup as a defenceman on the Carolina Hurricanes. In a press release, Mr. Commodore said: “CCM has history, swagger and a runway. The goal is to take that legacy global, and I’m fired up to be a part of it.”
CCM holds approximately 35 per cent of the North American hockey equipment market. The leading player is Bauer Hockey LLC, with a roughly 60-per-cent share.
Bauer is also owned by a private equity fund, Fairfax Financial Holdings Ltd. Last October, Fairfax announced a deal to take control of Bauer by acquiring the former partner Sagard Holdings Inc.’s stake in the company. Fairfax and Sagard, an arm of Power Corp. of Canada, acquired Bauer in 2017.