[BELL SPORTS LOGO] NEWS RELEASE
For Immediate Release contact: Tikie Holewski, SR VP
June 13, 2000 408-574-3601
BELL SPORTS CORPORATION ANNOUNCES NEW INVESTORS, PROMOTES KEY EXECUTIVES,
EXPANDS SANTA CRUZ OPERATION AND DEPLOYS TEAM TO DALLAS
San Jose, California - Bell Sports Corporation, the leader in design,
development, and marketing of bicycle helmets and accessories, today signed a
recapitalization agreement with Chartwell Investments. Bell also announced a
series of moves that continue to focus the company on growth and service to its
customers.
In the recapitalization transaction, Chartwell will acquire a controlling
interest in the company from the existing shareholders. Brentwood Associates and
Charlesbank Capital Partners LLC, the company's principal shareholders, and
certain members of management and other key investors will retain a modest level
of investment in the company following the recapitalization. The transaction,
which has been approved by the Board of Directors and stockholders of the
company, is subject to customary closing conditions and is expected to close by
mid-August of 2000.
"We have enjoyed a rewarding and productive partnership with Brentwood and
Charlesbank. During the two years since Brentwood and Charlesbank took the
company private, Bell has substantially improved its market position and
financial performance." said Mary George, who will become Executive Chairman of
the Board of Bell Sports Corp upon completion of the transaction.
"With our new partners at Chartwell, Bell Sports continues to be one of the
strongest capitalized companies in the industry. We will continue to be led by
the proven executive team that propelled the company's rapid growth.
Additionally, we are confident that by strengthening our presence in Santa Cruz
and opening a new front in Dallas, we will be able to invest more into channel
specific product development and focus even more on exceeding the expectations
of our customers," concluded Ms George.
Ms. George also announced the following Promotions:
Richard Willis, current Chief Operating and Chief Financial Officer will be
promoted to President and Chief Executive Officer upon completion of the
transaction. Other promotions include: Jay Romasco to Senior Vice President,
Global IBD Sales, Thom Parks to Vice President Corporate Affairs, Mike Bellick
to Vice President Global Wal-Mart team, John Cristiano to Vice President Mass
Division Sales, John Doerr to Vice President Supply Chain Management and Kurt
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Kemppainen to Vice President Product Development and Sourcing. These promotions
recognize the leadership and contributions from these key managers.
Richard Willis added the following:
SANTA CRUZ EXPANSION: The company will be expanding its Specialty Division
Product Marketing, Inside Sales, Research and Development, and Design teams at
its operation in Santa Cruz, California. "This is a logical step for us," said
Richard Willis, "Santa Cruz is a cycling mecca, and expanding our operation
means we can take advantage of this base of biking enthusiasts to further build
our team. More significantly it emphasizes our commitment to our Independent
Bike Dealers and the importance of this retail channel to our core strategy."
RELOCATING TO DALLAS. Bell Sports will relocate its Corporate and Mass teams
from San Jose to Dallas. "Dallas is the right place for Bell to be, it's a fast
growing community, centrally located, and has a tremendous talent pool. This
move allows us same day access to all our key customers, and puts us very close
to our domestic distribution centers. This will give us the opportunity to
extend greater service to our major customers, and allow us to work even closer
with them to develop quality products for the consumer." The move will take
place in November.
Added Willis, "Bell Sports is enjoying tremendous growth and these changes will
help us take advantage of this momentum. Every employee will have the
opportunity to continue to work with the Bell organization, and these moves will
not result in the loss of any positions. We will continue to lead the industry
in innovation and quality and to invest in our people and products. Further, we
have new investors that expect to provide significant resources to enable Bell
to make acquisitions. This will allow us to leverage our strong heritage of
successful acquisitions, and build an even stronger company. We are delighted to
have Chartwell as our new partners."
Bell Sports has been providing quality products to sports enthusiasts for over
50 years, and is the leading designer and marketer of bicycle helmets and a
broad line of cycling accessories throughout North America, Europe, Australia
and Asia. It is also a leader in marketing skating and winter sports helmets.
The company markets its helmets under the widely recognized Bell, Bell Pro and
Giro brand names, and its bicycle accessories under such leading brands as Bell,
Blackburn, Rhode Gear, VistaLite and Spoke-Hedz.
Chartwell Investments is a New York City based private equity firm, which
invests in growth financing and management buy-outs of middle market companies.
Chartwell recently completed the $200 million acquisition of Playcore, Inc., a
leading playground equiptment and backyard products company.
Brentwood Associates is a Los Angeles-based private equity firm with over $750
million under management, which specializes in growth-oriented build-ups and
buyouts. Charlesbank Capital Partners LLC, based in Boston, manages over $2
billion of capital committed to acquisition and expansion financing for growing
companies and developing real estate assets.
