Brentwood Associates and Charlesbank Capital Partners LLC Acquire Majority Interest in Bell Sports Corp

Business Wire, August 17, 1998

LOS ANGELES--(BUSINESS WIRE)--Aug. 17, 1998--Brentwood Associates, through its Brentwood Associates Buyout Fund II L.P. investment partnership, together with Charlesbank Capital Partners LLC, Monday announced that they have completed a recapitalization of Bell Sports Corp. in a transaction valued at approximately $200 million.

The recapitalization, which merges HB Acquisition Corp., an organization formed by Brentwood Associates and Charlesbank Capital Partners, with Bell Sports Corp., effectively converts Bell Sports from a publicly traded company to a privately held entity.

Bell Sports, with headquarters in San Jose, Calif., is the leading manufacturer and marketer of bicycle helmets worldwide and is a leading supplier of a broad line of bicycle accessories as well as auto racing, in-line skating, snowboarding and skiing helmets in North America.

The company markets its products under the Bell, Giro, Rhode Gear, VistaLite, Blackburn, BSI, Bike Star, Copper Canyon and Cycle Products brand names. Bell Sports had net sales of $207.2 million in the fiscal year ended June 30, 1998.

Financing for the transaction included a $60 million investment from Brentwood Associates Buyout Fund II L.P. and investment funds affiliated with Charlesbank Capital Partners. Chase Capital Partners, an existing shareholder, will roll over a portion of its existing investment and will hold a $5 million interest in the company.

The balance of the transaction is being financed by a $110 million offering of senior subordinated notes and a $60 million senior secured revolving credit facility.

"Brentwood Associates is excited about its significant equity investment in Bell Sports," said Edward McCall, a general partner of Brentwood Associates. "With its leading market shares in the domestic bicycle helmet and accessories markets, strong brand recognition, innovative product technology and design, and loyal customer base, Bell Sports is well positioned to capitalize on increasing safety awareness among consumers.

"We are enthusiastic about partnering with the management team to drive the growth of the company, especially through international expansion."

Brentwood Associates is a Los Angeles-based investment firm that has been active in making growth-oriented private equity investments in a broad range of industrial and service companies for more than 25 years. Since 1984, the firm has originated and managed private equity investments in 21 companies on behalf of institutional investors.

    CONTACT: Brentwood Associates
              Edward L. McCall, 310/477-6611
                                emccall@brentwood.com