Performance Sports Group Ltd (PSG): Dan Friedberg’s Sagard Capital Partners Trims Activist Stake to 4.4%

Dan Friedberg’s Sagard Capital Partners Management Corp disclosed yesterday a 17% reduction in its exposure to Performance Sports Group Ltd (NYSE:PSG). According to the amended Schedule 13D filing, the fund beneficially owns 1.95 million Common Shares, which represent 4.4% of the company’s outstanding stock, down from 2.36 million shares held in late-June.

Sagard Capital Partners Management is a Connecticut-based private investment firm that operates as an evergreen firm, with an indefinite holding period for its investments. It is a wholly owned subsidiary of Power Corporation of Canada (TSE:POW).

Sagard invests in small and mid-cap publicly listed companies in the United States, and usually seeks to acquire significant minority or control positions.

Performance Sports Group Ltd (NYSE:PSG) is a $642.8 million market cap company engaged in the design, manufacture and distribution of performance sports equipment for ice hockey, roller hockey, lacrosse, baseball and softball, as well as related apparel and accessories, including soccer apparel. It was formerly known as Bauer Performance Sports Ltd.

The company went public on late-June, offering 8.16 million Common Shares at a price to the public of $15.50 per share, for total gross proceeds of approximately $126.5 million, including the exercise in full of the over-allotment option. The management said that it would use the proceeds to reduce leverage and repay roughly $119.5 million of its term loan facility, which was used to finance the acquisition of Easton Baseball/Softball. The stock is up about 21.3% since the IPO.

According to the most recent SEC filing, Sagard Capital Partners sold 408,800 Performance Sports Group Ltd (NYSE:PSG) Common Shares between September 16 and October 14, for prices ranging from $16.01 per share to $17.03 per share. It ceased to beneficially own over 5.0% of the company’s Common Shares on September 18, 2014, although its stake still has an activist nature.

Another major institutional investor betting on this company is Grant Richard Babyak, Stephen Green and Tony Rosenthal’s Timessquare Capital Management, which owns more than 2 million shares.

Sagard Capital Partners’ biggest bet is placed on GP Strategies Corp (NYSE:GPX), which has returned 15.5% since the end of the second quarter, when the fund disclosed ownership of more than 3.51 million shares.

Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned

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