[BELL SPORTS LOGO] NEWS RELEASE [CHARTWELL INVESTMENTS LOGO]
Contact: Richard Willis, Contact: Todd R. Berman
Chief Operating Officer, CFO President
408-574-3530 212-521-5500
For Immediate Release
June 14, 2000
Bell Sports - Industry Leader in Bike Helmets and Accessories -
Recapitalized in Agreement with Chartwell
San Jose, California - Bell Sports Corp., the leader in design, development, and
marketing of bicycle helmets and accessories, today signed a recapitalization
agreement with an affiliate of Chartwell Investments.
Under the agreement, an affiliate of Chartwell and management are contributing
over $100 million of equity in a management-led recapitalization of Bell Sports
Corp. that will give Chartwell majority ownership. Brentwood Associates and
Charlesbank Capital Partners, the company's current investors, will continue to
maintain an interest in Bell. Total financing for the transaction is in excess
of $340 million.
"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 will continue 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 and we look
forward to working with Chartwell," concluded Ms. George.
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.
In April, 2000, Bell Sports Corp., released its results for the third quarter of
fiscal 2000 reporting LTM sales and LTM EBITDA as of March of $234.7 million and
$37.0 million, respectively.
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Richard Willis, who will become the President and Chief Executive Officer, upon
completion of the transaction, added, "Bell Sports is enjoying tremendous growth
and will continue to lead the industry in innovation and quality and to invest
in our people and products. Further, we have new investors that except 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."
"Bell is a market-leading company with outstanding people, innovative products
and excellent growth prospects. We are very enthusiastic about partnering with
Mary George, Richard Willis and the entire Bell team to continue the growth of
their company and realize Bell's full potential," said Todd Berman, President of
Chartwell.
The transaction will constitute a change of control under the Indenture
governing the Bell Sports Inc. outstanding 11% Senior Subordinated Notes due
2008 and as a result Bell Sports Inc., a wholly owned subsidiary of the Company,
expects to make a change of control offer to repurchase the Notes after closing.
Closing, which is subject to satisfaction of customary conditions, is
anticipated in mid August. The Board of Directors and stockholders of the
Company have approved the transaction.
Chartwell Investments is a New York City based private equity firm, which
invests in growth financings and management buy-outs of middle market companies.
Chartwell recently completed the $200 million acquisition of Playcore, Inc., a
leading playground equipment 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.
