Photo: Bell Helmets
Bell Helmets changed hands recently and entered under the umbrella of Vista Outdoor, Inc. (NYSE: VSTO). Vista Outdoor acquired the Action Sports businesses that until recently belonged to BRG Sports, Inc. The agreement will see Vista Outdoor becoming the new owner of the Bell, Giro, Blackburn and C-Preme brands, but no other changes have been announced at the time of writing.
Some of the reasons that caused BRG to let go of these brands will have to be found out later, but one of the lines in the press release caused us to raise an eyebrow. Still, in the absence of clear data, this might be worth nothing, but here's what the text reads.
"BRG Sports will apply the proceeds from the transaction to pay down debt, strengthen the Company’s balance sheet and pursue strategic growth initiatives that will benefit its most recognizable remaining brand, Riddell."
If you didn't know, Riddell is one of the major names in the segment of American football helmet and armor manufacturing, and their product list also includes shoulder pads, apparel, and other accessories.
It looks like maybe BRG was not strong enough to keep up with the requirements of the four brands that were sold to Vista Outdoor, or the company may have some financial issues that needed to be dealt with quickly. Either way, from now on, Riddell seems to be the main thing BRG concentrates on.
BRG sold Bell, Giro, Blackburn and C-Preme for $400 million (€) "in cash plus an earn-out related to the future performance of the powersports business and subject to a customary working capital adjustment."
Bell has just announced Pro Star carbon helmet, a new lid that integrates the latest technologies and promises to deliver a new level of rider safety and comfort.
"BRG Sports will apply the proceeds from the transaction to pay down debt, strengthen the Company’s balance sheet and pursue strategic growth initiatives that will benefit its most recognizable remaining brand, Riddell."
If you didn't know, Riddell is one of the major names in the segment of American football helmet and armor manufacturing, and their product list also includes shoulder pads, apparel, and other accessories.
It looks like maybe BRG was not strong enough to keep up with the requirements of the four brands that were sold to Vista Outdoor, or the company may have some financial issues that needed to be dealt with quickly. Either way, from now on, Riddell seems to be the main thing BRG concentrates on.
BRG's owners retain their investments
The press release also specifies that the owners of BRG, Fenway Partners Capital Fund II and Fund III, and Ontario Teachers’ Pension Plan will retain their investments in the company.BRG sold Bell, Giro, Blackburn and C-Preme for $400 million (€) "in cash plus an earn-out related to the future performance of the powersports business and subject to a customary working capital adjustment."
Bell has just announced Pro Star carbon helmet, a new lid that integrates the latest technologies and promises to deliver a new level of rider safety and comfort.
Google News