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Bell Sports Profiting From
Acquisitions, Consolidation

Summary: A 1996 article about Bell's profits after acquiring Giro.

An article from
Bicycle Retailer and Industry News
May 15, 1996
(used with their permission)

SCOTTSDALE, AZ Recent strategic moves, including the acquisition of Giro Sport Design and SportRack, a Canadian roof rack manufacturer, have apparently paid off for Bell Sports.

The company's profits totaled $624,000 in its third quarter, which ended Mar. 30.

During the same quarter last year, Bell lost $231,000. This year the company posted net sales of $67.4 million in the quarter, up 8 percent from last year.

"Fiscal 1996 has been a year of transition and foundation building. The strategic actions have begun to produce the desired results-profitability," said Terry Lee, Bell's chairman and chief executive officer.

In the last 12 months, Bell has merged with American Recreation, introduced the Bell helmet brand into the mass market, bought Giro and SportRack, embarked on an aggressive advertising campaign that includes television spots, and began consolidating its U.S. operations in Northern California.

Bell also restructured its Canadian operations, ending its 12year relationship with Norco, a Canadian distributor.

Bell products, including those sold under the Bell, Blackburn, Rhode Gear and VistaLite brands, will be distributed by CycleTech starting Aug. 1.

Norco will continue to sell and service Bell products until July 31. CycleTech recently moved its corporate office from Calgary to Bell's new Canadian headquarters in Granby, Quebec.

American Recreation bought CycleTech in 1994. When Bell merged with American Recreation last year, Canadians said it was only a matter of time before Bell pulled its products from Norco and gave them to CycleTech.