Riddell Bell Holdings has entered into an agreement to acquire 100% of the outstanding capital stock of Easton Sports, Inc. from JAS D. Easton, Inc., the current owners, for $385 million in cash. At the time of the closing of the transaction, JAS will purchase equity in Riddell Holdings in an aggregate amount of $25,000,000. Fenway Partners, the current owners of Riddell Bell holdings, was supported in the acquisition by Teachers Private Capital, the private investment arm of Ontario Teachers Pension Plan, which will acquire a significant minority interest in the combined entity. The new company will be named Easton-Bell Sports, Inc.
Easton-Bell Sports will generate more than $600 million in annual revenue and hold leading market positions in different equipment categories in baseball, softball, football, hockey, cycling, auto racing, and snow and motorcycle sports. Easton currently produces many hardgoods that are complimentary to Riddell-Bells existing product line, including a premium line of bicycle wheels, handlebars, and accessories; the #1 bat in the College World Series; and the #1 stick in the National Hockey League. Easton also operates a world-class carbon-fiber facility that could offer significant synergies in product development going forward.
Eastons chairman and second generation owner, Jim Easton, will be the Chairman of the Board of the combined company. The combination is expected to close during the first quarter of this year. Easton-Bell Sports will continue the predecessor companies growth strategies. “Easton-Bell Sports will remain committed to providing the sporting goods market with innovative products, maintaining and growing each of its tremendous brands, and strengthening all of its current channels of distribution and customer relationships,” said Mr. Easton.
As part of the merger, York Street Capital Partners, a US-based mezzanine debt fund principally sponsored by Teachers Private Capital, will increase its existing equity investment in RBH.
