Nike Inc. has no plan to integrate its production facilities with Canstar Sports Inc. of Mon-treal after it completes its purchase of the major producer of skates, hockey equipment and other sporting goods. Nike's footwear business does not have production synergies with Canstar's operations, explained Nike spokeswoman Donna Gibbs.
``There isn't much crossover between them,'' Gibbs said from Nike's Beaverton, Ore., headquarters. ``Canstar will operate as an autonomous unit.''
Gibbs said Nike expects to complete the Canstar transaction by March 1. It announced the deal late last year in a move to expand into fast-growing hockey and related markets. Nike recently acquired about 95 percent of Canstar common shares and is taking steps under Canadian securities regulations to acquire the rest. Canada's federal government has approved the takeover.
Gibbs said Nike's athletic footwear is assembled by contract manufacturers in Asia using subassemblies such as Airsole cushioning devices made at Nike's Beaverton plant. Beaverton sources polyurethane sheet and other plastic components from its Tetra Plastics Inc. subsidiary near St. Louis.
Tetra, now in a temporary facility in Earth City, Mo., is rebuilding its plant in Weldon Spring, Mo., after a 1993 flood damaged its original plant in St. Louis. Tetra, with extrusion, blow molding and injection molding capacity, also supplies other companies with plastic parts. Tetra last fall said it plans to start up the new, 220,000-square-foot plant in May.
Canstar injection molds and thermoforms all its plastic components at plants in St. Jerome, Quebec, and in Italy and the Czech Republic. Six of its eight plants are in Canada. Its products include ice skates, in-line skates, hockey equipment and accessories, snow boards, ski equipment, and sports apparel.
Nike also produces casual and dress footwear in the United States.
Nike is most interested in Canstar's hockey products but it will continue in other sports equipment, according to Gibbs. She said the two firms will collaborate in product development and marketing, but she didn't elaborate.
Major Canstar brand names include Bauer, Micron, Dauoust, Mega, Lange, Cooper and Flak. The firm had sales of about C$280 million (US$199.9 million) last year.
Nike offered US$19.88 per share for Canstar's shares in a deal worth about $395 million. Canstar is listed on the Toronto and Montreal exchanges and quoted on Nasdaq over-the-counter exchange. Nike's annual sales are about $4.1 billion.
Canstar rival SLM International Inc. of New York recently said it plans to sell its Buddy L toy division to focus on its sporting goods and fitness businesses.
