The owners of Bauer Hockey are exploring a sale of the Exeter, New Hampshire-based sporting goods maker, three sources familiar with the situation said.

Morgan Stanley is working on the potential sale, the sources said. Renowned as the market-leading ice hockey equipment brand, Bauer has around USD 150m in EBITDA, they said.

Originally founded in Kitchener, Ontario in 1927, Bauer is an iconic name in the world of ice hockey and was previously the flagship brand of Performance Sports Group (PSG), which filed for bankruptcy in 2016. In 2017, the US Bankruptcy Court for the District of Delaware approved the sale of PSG’s assets for USD 575m to a stalking horse bidder, comprising Toronto-based Fairfax Financial Holdings and an affiliate of global alternative asset manager Sagard Capital Partners. Bauer’s parent company was renamed Peak Achievement Athletics.

The potential sale comes amid heightening deal activity in the sporting goods sector. As reported by Mergermarket earlier this month, a sale process is ongoing for Bauer’s peer CCM Hockey. The Montreal-based designer and manufacturer of ice hockey equipment, which has USD 60m of EBITDA, is working with William Blair on the sale, with initial bids expected towards the end of May, as reported.

Bauer could attract a low double-digit EBITDA multiple and is most likely to appeal to financial sponsors, two of the sources said.

According to reports in December 2016 -prior to the stalking horse deal being agreed upon- private equity firms, including Bain Capital, KKR, and Sycamore Partners, were interested in PSG’s assets, while strategic interest was reported from Finland’s Amer Sports [NYSE:AS], which listed in New York earlier this year.

A sector banker described Bauer’s financials as “impressive” and agreed the company could appeal to sponsors who are active in the sector. Large sporting goods makers, such as Nike [NYSE:NKE] and Adidas [OTC:ADDYY], tend to want their own brand name, making them less obvious acquirers, the banker said, adding that some of these companies’ recent buys have been more focused on digital capabilities. For example, in December 2021 Nike acquired RTFKT, a gaming-focused collectibles brand. Nike previously owned Bauer from 1995 through to 2008.

Among recent completed private equity buyouts in the sector, Platinum Equity acquired Augusta, Georgia-based Augusta Sportswear Brands (ASB) and Statesville, North Carolina-based Founder Sport Group (FSG) in January, both of which are suppliers of apparel for athletic teams and sports fans.

There has also been deal activity in the lower middle market. Kinzie Capital, a Chicago-based sponsor that invests in lower middle market manufacturing, consumer, and business services assets, has been active in the sporting goods sector, acquiring Vista, California-based GT Golf Supplies, a wholesale distributor of golf supplies, in January 2023. The Kinzie-backed company then acquired ProActive Sports Group, a national golf accessories and products provider located in Canby, Oregon, in December.

Sagard and Morgan Stanley declined to comment. Bauer and Fairfax did not respond to requests for comment.