Fitness financials: Accell Group completes acquisition of Raleigh Cycle; Brunswick’s fitness sales up slightly

Accell Group completes its deal to acquire Diamondback Fitness parent Raleigh Cycle Limited. Plus Life Fitness and Hammer Strength report a slight increase in sales and profits.
Author:
Updated:
Original:

Accell Group completed its deal Thursday to acquire Raleigh Cycle Limited for EUR 60 million ($79.4 million), which includes the U.S. subsiduary Raleigh America, parent to Diamondback Fitness. As previously reported in SNEWS, Netherlands-based Accell has been in talks to acquire Raleigh since early April.

“As talks progressed with the various interested parties earlier this year, Accell Group emerged as the clear preferred buyer for the business, given the highly complementary product range and geographic presence of the two businesses,” Raleigh CEO, Alan Finden-Crofts said in a news release. “In Raleigh, Accell Group is acquiring a true global brand with 125 years of heritage and distribution into over 140 countries worldwide and I am entirely confident that Raleigh has found the ideal buyer to support the employees, customers, suppliers and the future growth of the business.”

The acquisition will be finalized at the end of May 2012 pending approval of German competition authorities.

Brunswick reports mixed 1Q results, fitness segment flat

Brunswick Corp. (NYSE:BC), parent company of the Life Fitness and Hammer Strength brands, today reported mixed results, including slightly lower revenue, but a higher first-quarter 2012 profit. Fitness segement sales were up, albeit modestly.

The Lake Forest, Ill.-based company reported its fitness group sales (which accounts for 16 percent of the company’s total revenue) increased less than a percentage point to $157.1 million, up from $156.4 million a year ago. Company officials said international sales, which represent 48 percent of the total segment sales for the quarter, decreased by 13 percent.

For the quarter, the fitness segment reported an operating income of $23.7 million, up slightly from $23.4 million in the first quarter of 2011, which officials pointed out as a postive result considering the comparison to last year's first quarter that included a large order of commercial products from one company.



In total, Brunwick, which also makes bowling, billiards and boating products, saw is first-quareter revenue slip 1 percent to $974.2 million from a year ago. The company’s net earnings, however, increased to $39.7 million, up from $27.5 million a year ago, or 43 cents per diluted share, up from 30 cents per diluted share a year ago.

Fellow fitness company Cybex, which released its first-quarter earnings Tuesday, reported its sales up 20 percent for the quarter along with a profit, but warned of slowing sales ahead in the second quarter.

--Ana Trujillo

Related

diamondback-logo.gif

Accell Group in discussions to acquire Raleigh Cycle Limited, including Diamondback Fitness

Accell Group is in exclusive discussions to acquire Raleigh Cycle Limited, including its U.S. subsiduary Raleigh America, parent to Diamondback Fitness. The Diamondback brand, which also includes a larger bicycle division, was born in California in 1978, and has enjoyed ...read more

Life_Fitness_logo.gif

Life Fitness, Hammer Strength 2Q sales up slightly for parent Brunswick

Life Fitness and Hammer Strength saw their sales uptick slightly in the second quarter 2012 as strong U.S. sales were offset by weakness in Europe. The Brunswick (NYSE: BC) owned fitness equipment brands reported revenue up 1 percent to $143.3 million, compared to a year ago. ...read more

Accell Group Acquires Raleigh Cycle

London (April 26, 2012) – The directors of Raleigh Cycle Limited announced today that they have reached agreement on the sale of Raleigh to Accell Group N.V. There is a very complementary fit between the two businesses, with very little geographical overlap; in particular ...read more

Financials09sm.jpg

Fitness financials: Accell reports slight uptick in FY ’10 sales, plus Garmin, Sears, Winmark

Accell reports slight uptick in FY ’10 sales Accell Group (ACCG.AS) said its yearly sales rose 1 percent, with its fitness segment revenue accounting for around 5 percent of its overall sales. For 2010, group sales, which includes Accell Fitness, Tunturi and Bremshey, were EUR ...read more

Fitness financials: Cybex's sales, profit down in Q2, plus Accell Group, GSI Commerce, Brunswick

Cybex's sales, profit down in Q2 Despite a reported pick-up in sales orders in mid-June, Cybex International (Nasdaq: CYBI) posted a drop both in its net sales and in its net income for the second quarter. "At this moment serious issues of credit, debt levels, consumer spending ...read more

Financials09sm.jpg

Fitness financials: Hibbett 2Q retail sales shine; plus Canadian fitness retailers complete deal

Hibbett Sports Inc. (Nasdaq: HIBB) increased its guidance after reporting higher revenue and profit led by strong sales of footwear and active wear for its fiscal second quarter, ended July 30, 2011. The Birmingham, Ala.-based fitness and sporting goods national retail chain ...read more

Fitness financials: Brunswick's Q1 profit drops 71 percent, Life Time Fitness, Nautilus, The Sports Club, Accell Group, GSI Commerce

Brunswick's Q1 profit drops 71 percent Despite a 3-percent rise in sales for its Life Fitness division, Brunswick Corp.'s (NYSE: BC) first-quarter profit plunged 71 percent, weighed down by weaker demand for its core boat products, as well as restructuring and other charges. For ...read more

Fitness financials: Accell Group expects 15-percent profit growth in 2008, plus Brunswick, Hanesbrands

Accell Group expects 15-percent profit growth in 2008 Accell Group said it expects an increase of net profit from ordinary operations of approximately 15 percent for 2008 in comparison to 2007, based on sales up to and including October and the prospects for the last two months ...read more

Fitness financials: Accell Group sales boosted by acquisitions, plus Precor-parent Amer Sports, Sara Lee/Champion, Everlast, Gaiam, Foot Locker, Costco, Wal-Mart

Accell Group sales boosted by acquisitionsThe Netherlands' Accell Group, parent of Tunturi and recent acquirers of Wynne International, reported that sales for the first half of 2005 were up 5 percent to Euro 213.8 million (USD $264 million) compared to Euro 204.3 million (USD ...read more