Riddell Sports Group has been flipped once again after a two-year ownership stint under Lincolnshire Management.
Lincolnshire should net close to $40 million in the deal that sees Fenway Partners Inc. acquire the football equipment maker for about $100 million. Lincolnshire acquired Riddell for approximately $61 million in cash in June 2001 from the company now known as Varsity Brands. Riddell had about $100 million in sales in 2002.
Coincidentally, the profit margin on the deal for LM is about what the firm invested in the management-led buyout of Prince Sports from Benneton in March. (SEW Week 0313)
Fenway, a New York firm with assets of more than $1.4 billion, has said it invests in companies with established reputations and widely recognized brands.
Fenway just last month sold its 50% ownership stake in Valley Dynamo to Brunswick in a deal worth $17.25 million. (SEW 0324)
Riddell CEO Bill Sherman will remain in his post, said Peter Lamm, CEO of Fenway.
Michael Lyons, senior managing director at Lincolnshire, said revenue grew more than 20% over the last two years. The firm more than doubled its money on the Riddell investment, he said.
American Capital Strategies supported the Fenway/Riddell deal, reportedly investing $23 million in Riddell Sports Group. The ACS investment takes the form of senior subordinated debt and equity. Wachovia Bank led a revolving credit facility and senior term loan.
American Capital invested $18 million in late 1998 to fund the consolidation of Mad River Canoe and Wilderness Systems that formed Confluence Holdings Corp.
>>> Buying low and selling high make for nice profits, but are you building a business here???
