Iconic sports manufacturer acquired by Wilson, impact on softball unknown

Note: this article ran on March 24, 2015 in the Courier Journal… here’s the link to the original article titled “Louisville Slugger sold, workforce cut.”

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Hillerich and Bradsby, the 131-year-old homegrown Louisville company, announced Monday it’s selling its iconic Louisville Slugger brand to Wilson Sporting Goods, cutting 52 employees or a fifth of its workforce.

Under the $70 million cash deal due to close in June, Wilson would acquire global brand, sales and innovation rights to Louisville Slugger, pending H&B shareholder approval.

H&B would continue manufacturing all Louisville Slugger-branded Major League Baseball, minor league, amateur and souvenir wooden bats for Wilson, while maintaining ownership of the Louisville Slugger Museum & Factory.

Its Bionic gloves and Powerbilt golf brand are not part of the deal.

Shrinking resources and the prospect of keeping pace with better-funded multi-national companies drove the family to consider an acquisition about 18 months ago, John A. Hillerich IV, H&B’s chief executive officer, said at a news briefing Monday.

“It was not an easy decision, nor one I took lightly.”

Mayor Greg Fischer said in a statement that he’s glad the Slugger operations, including the popular tourist attraction that draws visitors from across the globe, will remain in the city.

The Louisville company intends to pay off undisclosed debt and use remaining sale proceeds to improve the bat production facility, invest in its Bionic brand and make improvements to its museum exhibits, Hillerich said.

The Wilson deal may mean an expansion beyond the one shift per day production to two shifts, but they don’t anticipate enlarging the factory’s footprint, he added.

H&B now employs 273 people, but the workforce will shrink to 177 in the next four months.

Forty-four of the jobs, roughly half of which are sales positions in the field, will be shifted to Wilson. The 52 employees slated for layoffs work in administrative support, including IT, credit and accounts payable positions, he said, adding that it’s an “unfortunate situation” that will ultimately increase efficiency.

The company also maintains a warehouse near University of Louisville’s campus where bats from the 800 W. Main St. factory are shipped to customers. The mostly part-time workforce there will shift to the downtown offices, and Slugger will ship bats directly to Wilson where it handle shipping and order fulfillment, Hillerich said.

The Louisville facility likely would serve as storage for the Louisville factory and Bionic, he said.