Hockey equipment producing company, Bauer who has 52 percent global market share in ice hockey equipment is stepping out to increase its market share in the growing lacrosse equipment market. Lacrosse is the fastest growing team sport in North America, so Bauer sees a market opportunity in entering this market. Bauer is hoping to minimize the negative market impact of the NHL lockout on hockey equipment. They are expecting their sales to drop because of this, so they want to offset the negative impact by growing a complementary business. Bauer has purchased a company called Cascade Helmets Holdings Inc. in order to build a lacrosse business. Bauer is well recognized for producing quality sport equipment, and they have a strong marketing network and reputation, therefore their move into lacrosse equipment is complementary to their existing core business. This is an example of a company repositioning with a new product line through a corporate acquisition.
Source
Globe and Mail “Bauer aims to rebound from NHL lockout with lacrosse play”
Bertrand Marotte, Oct 7th, 2012