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.