Heads Up: Private Equity Group Takes Control Of Riddell

N.Y.-based private equity group Fenway Partners "is expected to announce" this week that it has taken a controlling interest in Riddell Sports, according to Jeremy Grant of the FINANCIAL TIMES. Fenway Partners agreed to pay $100M for its stake in Riddell, which makes about half the football helmets in the U.S. Over 85% of NFL players wear Riddell helmets. Fenway President Richard Dresdale said that the market "for new helmets was growing 'relatively slowly,'" but cited a federal regulation which requires all helmets to be inspected once a year as "providing further opportunities." Dresdale: "Riddell has a direct sales force that goes into colleges and high schools. One million school and college kids are playing football so those are our customers." Grant noted that "significant growth potential lay in increasing Riddell's sales force, as well as making selective acquisitions of small, family-run helmet reconditioning companies." Dresdale also said that Fenway was "looking at ways of bringing Riddell's safety helmet technology to other sports," noting that the company recently announced plans to make lacrosse helmets. Fenway purchased its interest in Riddell from Lincolnshare Management, another private equity group which had held the stake since '01 (FINANCIAL TIMES, 7/5).