Private Equity firm Fenway Partners, Inc. will acquire Bell Sports, essentially forming the worlds largest protective headgear and related accessories company. Fenway, which owns football helmet maker Riddell Sports Group, plans to combine Bell Sports and Riddell. Bill Fry, president and CEO of Bell Sports, has been appointed as president and CEO of the new company, the name of which will be forthcoming.
The combined company, which will produce more than 8 million helmets annually, will have projected 2004 revenues of more than $300 million and a strong capital structure. Together, Bell and Riddell will have the world's largest research and development effort focused on head protection. The combination provides both companies with access to all major distribution channels and a global sourcing network to expand the breadth of products offered by each, which will accelerate the execution of their current business strategies.
Bell Sports will continue to drive its business forward based on its industry-leading brand names, product lines and services and has no plans to change its headcount, distribution strategy or business locations.
With capital backing from Fenway, the combined companies will enhance commitments to their existing core markets while pursuing strategic growth opportunities.
Together, Bell Sports and Riddell have a wide-ranging portfolio of authentic, leading brands in helmets and accessories unmatched in the sporting goods industry. The premier athletes in cycling and action sports wear and endorse Bell and Giro helmets, including six-time Tour de France winner Lance Armstrong, BMX stunt-riding champion Dave Mirra, leading freestyle skier Tanner Hall and supercross champion Jeremy McGrath. Riddell helmets are worn by 85 percent of the National Football League (NFL).
“Bringing together these three unsurpassed, authentic brands that cater to everyone from professional athletes to recreational enthusiasts creates a powerful new business with tremendous growth opportunities,” said Fry. “We will stay true to our roots and commitments in our core markets as we become an exciting developer, manufacturer and marketer of protective headgear and related accessories across multiple sports.”
Founded in 1954, Bell Sports invented the worlds first truly protective auto racing helmet, full-face motorcycle helmet and bicycle helmet. In the past two years, the company has expanded its research and development efforts by 25 percent and entered new markets, such as motorcycle helmets and fitness accessories. Today, through its Bell, Giro and licensed brands, Bell Sports holds more than 60 percent of the cycling and action sports helmet market and distributes to more than 10,000 retail storefronts. Bell also is the market leader for bicycle helmets in Europe and for snowsports helmets in the U.S.
Fenway shares Bell Sports vision for future growth leveraging existing brands in current and emerging markets.
“This strategic transaction reflects the Fenway value-building model at work,” said Peter Lamm, Chairman and Chief Executive of Fenway Partners. “We are bringing together a world class brand portfolio and two superb management teams that we believe will create a number of exceptional growth opportunities. This combination will lead to accelerated product introductions and expansion new markets and distribution channels.”
