Fenway Partners, Inc., a leading private equity firm with investments in the middle market, has announced that it has completed its acquisition of Bell Sports Corporation, combining it with Riddell Sports Group, which Fenway purchased in June of 2003. The two companies are now separate subsidiaries of a new company, Riddell Bell Holdings, Inc.
The acquisition of Bell Sports is the latest in a series of successful transactions for Fenway. In the past six months, Fenway acquired American Achievement Corporation and completed five add-on acquisitions: two to Riddell and three to another portfolio company, Transport Industries. In April, Fenway completed the partial sale of Harry Winston and, in December 2003, sold Simmons Company for $1.1 billion.
In connection with the acquisition of Bell and the merger with Riddell, Fenway arranged a new $130.2 million senior secured credit facility and completed a $140 million, 144A senior subordinated notes offering. Proceeds from these financings were used for the purchase of Bell Sports and for refinancing of existing indebtedness.
The new company produces more than 8 million helmets annually and will have projected 2004 revenues of more than $300 million. Together, Bell and Riddell 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.
“Fenway has been very active on a number of fronts over the past 12 months, including successfully sourcing two new platform investments, achieving attractive realizations and building the value of our portfolio,” said Mark Genender, Fenway Managing Director. “This transaction further validates the attractive dynamics of our segment of the middle market and offers an ideal opportunity for us to execute our operationally focused, value-creating model as well as demonstrate the capabilities of Fenway in partnership with a great management team.”
